{"entries":[{"key":"LX.IFRS2.000001","source":"V2","standard_id":"IFRS2","concept_ids":["IFRS2.SCOPE.SBP_TRANSACTION"],"dimension":"RULE_KNOWLEDGE","format":"SINGLE_CHOICE","context":"SOFTWARE","tested_point":"SBP_DEFINITION","difficulty":"BEGINNER","estimated_time_s":45,"lesson_id":"LS.IFRS2.000001","review":{"standard_id":"IFRS2","lesson_id":"LS.IFRS2.000001","section_id":"understand"},"references":["IFRS 2 §2"],"exercise":{"prompt":{"fr":"","en":"Which sentence best describes a share-based payment transaction?","es":""},"explanation":{"fr":"","en":"The test is the exchange: goods or services received against the entity's equity instruments or a liability whose amount depends on its share price (IFRS 2).","es":""},"common_error":{"fr":"","en":"Confusing share-based payment with any securities transaction.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The entity receives goods or services and pays for them with its equity instruments or a liability linked to the price of its share","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"The entity issues new shares to raise funds from its existing shareholders","es":""},"correct":false,"feedback":{"fr":"","en":"A capital increase finances the entity; it does not pay for any good or service received.","es":""}},{"id":"C","text":{"fr":"","en":"The entity pays a share dividend to its shareholders in place of a cash dividend","es":""},"correct":false,"feedback":{"fr":"","en":"A dividend rewards shareholders as such; no service or good is received in exchange.","es":""}},{"id":"D","text":{"fr":"","en":"The entity buys back its own shares on the market to reduce the number of shares outstanding","es":""},"correct":false,"feedback":{"fr":"","en":"A share buyback is an equity transaction; it does not pay for any good or service received.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS2.000002","source":"V2","standard_id":"IFRS2","concept_ids":["IFRS2.SCOPE.SBP_TRANSACTION"],"dimension":"RECOGNITION","format":"TRUE_FALSE","context":"MANUFACTURING","tested_point":"SBP_SUPPLIER","difficulty":"BEGINNER","estimated_time_s":30,"lesson_id":"LS.IFRS2.000001","review":{"standard_id":"IFRS2","lesson_id":"LS.IFRS2.000001","section_id":"understand"},"references":["IFRS 2 §2"],"exercise":{"prompt":{"fr":"","en":"A factory that pays a machinery supplier by handing over 4,000 of its own shares makes a share-based payment transaction.","es":""},"explanation":{"fr":"","en":"The factory receives goods (the machines) in exchange for its own equity instruments: the definition is met (IFRS 2).","es":""},"common_error":{"fr":"","en":"Reserving the standard for employee pay.","es":""},"format":"TRUE_FALSE","answer":true},"scope":"CORE_STUDENT"},{"key":"LX.IFRS2.000003","source":"V2","standard_id":"IFRS2","concept_ids":["IFRS2.SCOPE.SBP_TRANSACTION"],"dimension":"RECOGNITION","format":"CLASSIFICATION","context":"GENERIC","tested_point":"SBP_OR_NOT_SORTING","difficulty":"INTERMEDIATE","estimated_time_s":90,"lesson_id":"LS.IFRS2.000001","review":{"standard_id":"IFRS2","lesson_id":"LS.IFRS2.000001","section_id":"understand"},"references":["IFRS 2 §2"],"exercise":{"prompt":{"fr":"","en":"Sort each situation according to whether or not it is a share-based payment transaction.","es":""},"explanation":{"fr":"","en":"Situations 1 and 2 exchange services for equity instruments or a price-linked liability; the cash purchase at a fixed price and the dividend are tied neither to shares nor to a service paid in securities (IFRS 2).","es":""},"common_error":{"fr":"","en":"Excluding the cash bonus because no security is issued.","es":""},"format":"CLASSIFICATION","categories":[{"id":"SBP","text":{"fr":"","en":"Share-based payment","es":""}},{"id":"NOT","text":{"fr":"","en":"Not a share-based payment","es":""}}],"items":[{"id":"i1","text":{"fr":"","en":"Options on its shares granted to a sales director in exchange for services","es":""},"category":"SBP"},{"id":"i2","text":{"fr":"","en":"Cash bonus equal to the value of 700 of the entity's shares at the end of the year","es":""},"category":"SBP"},{"id":"i3","text":{"fr":"","en":"Purchase of a truck paid by cheque at a price set in the contract","es":""},"category":"NOT"},{"id":"i4","text":{"fr":"","en":"Cash dividend paid to shareholders","es":""},"category":"NOT"}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS2.000004","source":"V2","standard_id":"IFRS2","concept_ids":["IFRS2.SCOPE.SETTLEMENT_CLASSIFICATION"],"dimension":"RECOGNITION","format":"MATCHING","context":"RETAIL","tested_point":"SETTLEMENT_MATCH","difficulty":"BEGINNER","estimated_time_s":75,"lesson_id":"LS.IFRS2.000001","review":{"standard_id":"IFRS2","lesson_id":"LS.IFRS2.000001","section_id":"rule-settlement"},"references":["IFRS 2 §2","IFRS 2 §30"],"exercise":{"prompt":{"fr":"","en":"Match each plan with the corresponding settlement method.","es":""},"explanation":{"fr":"","en":"Securities handed over give equity settlement; euros calculated on the price give cash settlement; a choice between the two gives a settlement alternative (IFRS 2).","es":""},"common_error":{"fr":"","en":"Linking cash settlement to any plan whose value moves with the price.","es":""},"format":"MATCHING","left":[{"id":"L1","text":{"fr":"","en":"The employee receives 200 shares of the entity after three years","es":""}},{"id":"L2","text":{"fr":"","en":"The employee receives in euros the value of 200 shares after three years","es":""}},{"id":"L3","text":{"fr":"","en":"The employee chooses, after three years, 200 shares or their value in euros","es":""}}],"right":[{"id":"R1","text":{"fr":"","en":"Equity-settled","es":""}},{"id":"R2","text":{"fr":"","en":"Cash-settled","es":""}},{"id":"R3","text":{"fr":"","en":"Settlement alternative","es":""}},{"id":"R4","text":{"fr":"","en":"Outside the scope of IFRS 2","es":""}}],"pairs":[{"left":"L1","right":"R1"},{"left":"L2","right":"R2"},{"left":"L3","right":"R3"}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS2.000005","source":"V2","standard_id":"IFRS2","concept_ids":["IFRS2.SCOPE.SETTLEMENT_CLASSIFICATION"],"dimension":"APPLICATION","format":"SINGLE_CHOICE","context":"TELECOM","tested_point":"SETTLEMENT_FROM_TERMS","difficulty":"INTERMEDIATE","estimated_time_s":60,"lesson_id":"LS.IFRS2.000001","review":{"standard_id":"IFRS2","lesson_id":"LS.IFRS2.000001","section_id":"rule-settlement"},"references":["IFRS 2 §2","IFRS 2 §30"],"exercise":{"prompt":{"fr":"","en":"The terms of a plan state: \"At maturity, the entity pays in euros 250 times the increase in its share price since the grant.\" What is the classification?","es":""},"explanation":{"fr":"","en":"The entity pays out cash for an amount based on the price: a cash-settled transaction, with a liability (IFRS 2).","es":""},"common_error":{"fr":"","en":"Confusing dependence on the price with settlement in securities.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Equity-settled transaction, with a reserve as the credit side of the expense","es":""},"correct":false,"feedback":{"fr":"","en":"A reserve assumes the entity hands over its securities; here it pays in euros, which creates a liability.","es":""}},{"id":"B","text":{"fr":"","en":"Transaction with a settlement alternative, because the amount depends on a stock market price","es":""},"correct":false,"feedback":{"fr":"","en":"The plan gives nobody the choice between cash and securities: there is no settlement alternative.","es":""}},{"id":"C","text":{"fr":"","en":"Outside the scope of IFRS 2, because the plan beneficiary receives no share","es":""},"correct":false,"feedback":{"fr":"","en":"A liability based on the share price is within scope, even with no handover of securities.","es":""}},{"id":"D","text":{"fr":"","en":"Cash-settled transaction, with a liability","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS2.000006","source":"V2","standard_id":"IFRS2","concept_ids":["IFRS2.SCOPE.SETTLEMENT_CLASSIFICATION"],"dimension":"ANALYSIS","format":"MULTIPLE_CHOICE","context":"ENERGY","tested_point":"SETTLEMENT_CASH_FEATURES","difficulty":"INTERMEDIATE","estimated_time_s":75,"lesson_id":"LS.IFRS2.000001","review":{"standard_id":"IFRS2","lesson_id":"LS.IFRS2.000001","section_id":"rule-settlement"},"references":["IFRS 2 §2","IFRS 2 §30"],"exercise":{"prompt":{"fr":"","en":"Which features of a plan allow the conclusion that it is cash-settled? (several answers)","es":""},"explanation":{"fr":"","en":"An obligation to pay cash for an amount based on the price, with no handover of securities, characterises cash settlement (IFRS 2). Issuing securities or exercising options to subscribe for shares characterises equity settlement.","es":""},"common_error":{"fr":"","en":"Classifying a share option plan as cash-settled because it is valued in euros.","es":""},"format":"MULTIPLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The entity commits to pay euros calculated on its share price","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"The beneficiary receives no security and collects a cash amount at maturity","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"The entity issues new shares for the beneficiary at the end of the plan","es":""},"correct":false,"feedback":{"fr":"","en":"Issuing securities is the mark of equity settlement.","es":""}},{"id":"D","text":{"fr":"","en":"The beneficiary can exercise options and subscribe for shares at an agreed price","es":""},"correct":false,"feedback":{"fr":"","en":"Subscribing for shares through options is equity settlement.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS2.000007","source":"V2","standard_id":"IFRS2","concept_ids":["IFRS2.SCOPE.SETTLEMENT_CLASSIFICATION","IFRS2.SCOPE.SBP_TRANSACTION"],"dimension":"PROFESSIONAL_JUDGMENT","format":"MINI_CASE","context":"LOGISTICS","tested_point":"THREE_PLANS_MINI_CASE","difficulty":"ADVANCED","estimated_time_s":240,"lesson_id":"LS.IFRS2.000001","review":{"standard_id":"IFRS2","lesson_id":"LS.IFRS2.000001","section_id":"judgment"},"references":["IFRS 2 §2","IFRS 2 §30"],"exercise":{"prompt":{"fr":"","en":"Analyse the three arrangements of Torvane SA.","es":""},"explanation":{"fr":"","en":"Arrangements (1) and (2) are within the scope of IFRS 2, equity-settled and cash-settled respectively (IFRS 2); the fixed bonus of arrangement (3) falls under IAS 19 (IFRS 2).","es":""},"common_error":{"fr":"","en":"Being guided by the label \"bonus\" or \"plan\" instead of looking at what the entity delivers.","es":""},"format":"MINI_CASE","scenario":{"fr":"","en":"Torvane SA, a transport company, has three arrangements in place (case data): (1) 30 drivers each receive 600 options on Torvane shares, which give a right to shares after three years of service; (2) directors receive in five years a euro sum equal to the value of 850 Torvane shares; (3) all employees receive an annual cash bonus of €1,700, independent of the share price.","es":""},"parts":[{"prompt":{"fr":"","en":"How is arrangement (1) classified?","es":""},"explanation":{"fr":"","en":"The options give a right to shares issued by Torvane: equity settlement.","es":""},"common_error":{"fr":"","en":"Reasoning on the beneficiary's role.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Cash-settled transaction, because the drivers hold a right to a value","es":""},"correct":false,"feedback":{"fr":"","en":"The drivers receive shares, not cash: the entity issues securities.","es":""}},{"id":"B","text":{"fr":"","en":"Transaction with a settlement alternative, because options can also be resold","es":""},"correct":false,"feedback":{"fr":"","en":"Any resale is not a settlement choice offered by the entity or the counterparty.","es":""}},{"id":"C","text":{"fr":"","en":"Equity-settled transaction","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"Outside the scope of IFRS 2, because the drivers are not executives","es":""},"correct":false,"feedback":{"fr":"","en":"The scope covers services received, whatever the person's role.","es":""}}],"id":"p1","dimension":"RECOGNITION"},{"prompt":{"fr":"","en":"How is arrangement (2) classified?","es":""},"explanation":{"fr":"","en":"A euro amount based on the share price, with no handover of securities, is cash settlement (IFRS 2).","es":""},"common_error":{"fr":"","en":"Calling an arrangement settled in euros a share-based payment settled in shares.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Equity-settled transaction, since the sum follows the share","es":""},"correct":false,"feedback":{"fr":"","en":"No security is handed over: the sum is paid in euros.","es":""}},{"id":"B","text":{"fr":"","en":"Cash-settled transaction, with a liability","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"IAS 19 employee benefit, because it is paid in euros","es":""},"correct":false,"feedback":{"fr":"","en":"The amount depends on the share price: it is a transaction of the standard, not an ordinary benefit.","es":""}},{"id":"D","text":{"fr":"","en":"Settlement alternative, because the value of the 850 shares is uncertain","es":""},"correct":false,"feedback":{"fr":"","en":"Uncertainty about the value is not a choice of settlement method.","es":""}}],"id":"p2","dimension":"RECOGNITION"},{"prompt":{"fr":"","en":"The annual €1,700 bonus in arrangement (3) falls under IFRS 2.","es":""},"explanation":{"fr":"","en":"The amount is fixed, in cash, with no link to the share price: an IAS 19 employee benefit (IFRS 2).","es":""},"common_error":{"fr":"","en":"Applying IFRS 2 to every bonus.","es":""},"format":"TRUE_FALSE","answer":false,"id":"p3","dimension":"RECOGNITION"}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS2.000008","source":"V2","standard_id":"IFRS2","concept_ids":["IFRS2.SCOPE.EXCLUSIONS"],"dimension":"RECOGNITION","format":"SINGLE_CHOICE","context":"RETAIL","tested_point":"IAS19_VS_IFRS2_BONUS","difficulty":"INTERMEDIATE","estimated_time_s":60,"lesson_id":"LS.IFRS2.000001","review":{"standard_id":"IFRS2","lesson_id":"LS.IFRS2.000001","section_id":"rule-exclusions"},"references":["IFRS 2 §5","IFRS 2 §6","IFRS 2"],"exercise":{"prompt":{"fr":"","en":"A retailer pays its sales staff a cash bonus equal to 3% of their store's revenue. Which standard applies to this bonus?","es":""},"explanation":{"fr":"","en":"The bonus is a percentage of revenue, with no link to the share price: an employee benefit governed by IAS 19 (IFRS 2).","es":""},"common_error":{"fr":"","en":"Applying IFRS 2 to any deferred pay.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"IFRS 2, because the bonus is paid in exchange for the sales staff's services","es":""},"correct":false,"feedback":{"fr":"","en":"Every employee benefit pays for a service; what brings a payment into IFRS 2 is the link with the share.","es":""}},{"id":"B","text":{"fr":"","en":"IAS 19, because the bonus does not depend on the share price","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"IAS 37, because the amount of the bonus remains uncertain until the reporting date","es":""},"correct":false,"feedback":{"fr":"","en":"A bonus due in exchange for employees' services comes under the employee benefits standard; uncertainty about the amount does not bring it into IAS 37.","es":""}},{"id":"D","text":{"fr":"","en":"Neither IFRS 2 nor IAS 19, because the bonus is not contractual","es":""},"correct":false,"feedback":{"fr":"","en":"A bonus announced to employees is an employee benefit that must be accounted for.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS2.000009","source":"V2","standard_id":"IFRS2","concept_ids":["IFRS2.SCOPE.EXCLUSIONS"],"dimension":"ANALYSIS","format":"ERROR_SPOT","context":"GENERIC","tested_point":"SCOPE_BOUNDARIES_ERROR_SPOT","difficulty":"ADVANCED","estimated_time_s":90,"lesson_id":"LS.IFRS2.000001","review":{"standard_id":"IFRS2","lesson_id":"LS.IFRS2.000001","section_id":"rule-exclusions"},"references":["IFRS 2 §5","IFRS 2 §6","IFRS 2"],"exercise":{"prompt":{"fr":"","en":"Spot the erroneous statements about the boundaries of the scope of IFRS 2.","es":""},"explanation":{"fr":"","en":"A fixed-amount cash payment with no link to the share price comes under IAS 19, and a cash bonus indexed to the value of shares is a cash-settled share-based payment (IFRS 2). By contrast, a contract to buy a non-financial item comes under IAS 32 or IFRS 9, and not IFRS 2, when it falls within their scope (the ability to settle net is not enough by itself), and instruments paying for post-combination service fall under IFRS 2.","es":""},"common_error":{"fr":"","en":"Applying IFRS 2 to any contract that can be settled in cash.","es":""},"format":"ERROR_SPOT","statements":[{"id":"s1","text":{"fr":"","en":"A fixed-amount cash payment with no link to the share price is an IAS 19 employee benefit.","es":""},"erroneous":false},{"id":"s2","text":{"fr":"","en":"A wheat delivery contract that can be settled net in cash follows IFRS 2 because it can be settled in cash.","es":""},"erroneous":true,"correction":{"fr":"","en":"A contract to buy non-financial items falls under IAS 32 or IFRS 9 when it falls within their scope, not IFRS 2; the ability to settle net does not make it a share-based payment.","es":""}},{"id":"s3","text":{"fr":"","en":"A cash bonus equal to the value of 100 of the entity's shares is a cash-settled share-based payment transaction.","es":""},"erroneous":false},{"id":"s4","text":{"fr":"","en":"In an acquisition, instruments given to the acquiree's employees in exchange for post-combination service fall under IFRS 3 and not IFRS 2.","es":""},"erroneous":true,"correction":{"fr":"","en":"Instruments that pay for post-combination service fall under IFRS 2; IFRS 3 only settles what is consideration for control.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS2.000010","source":"V2","standard_id":"IFRS2","concept_ids":["IFRS2.SCOPE.EXCLUSIONS","IFRS2.SCOPE.SETTLEMENT_CLASSIFICATION"],"dimension":"RULE_KNOWLEDGE","format":"FILL_BLANK","context":"AUTOMOTIVE","tested_point":"BONUS_FILL_BLANK","difficulty":"BEGINNER","estimated_time_s":60,"lesson_id":"LS.IFRS2.000001","review":{"standard_id":"IFRS2","lesson_id":"LS.IFRS2.000001","section_id":"rule-exclusions"},"references":["IFRS 2 §5","IFRS 2 §6","IFRS 2","IFRS 2 §2","IFRS 2 §30"],"exercise":{"prompt":{"fr":"","en":"Complete the sentence.","es":""},"explanation":{"fr":"","en":"With no link to the price, the cash bonus is an IAS 19 employee benefit; with a price link, it is a cash-settled IFRS 2 transaction (IFRS 2).","es":""},"common_error":{"fr":"","en":"Choosing IAS 32 because the bonus concerns shares.","es":""},"format":"FILL_BLANK","text":{"fr":"","en":"A cash bonus {{lien}} the share price falls under {{norme}}; a bonus calculated on that price falls under IFRS 2.","es":""},"blanks":[{"id":"lien","mode":"CHOICE","choices":[{"id":"indep","text":{"fr":"","en":"independent of","es":""}},{"id":"linked","text":{"fr":"","en":"linked to","es":""}}],"answer":"indep"},{"id":"norme","mode":"CHOICE","choices":[{"id":"ias19","text":{"fr":"","en":"IAS 19","es":""}},{"id":"ias32","text":{"fr":"","en":"IAS 32","es":""}},{"id":"ifrs9","text":{"fr":"","en":"IFRS 9","es":""}}],"answer":"ias19"}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS2.000011","source":"V2","standard_id":"IFRS2","concept_ids":["IFRS2.RECOGNITION.WHEN_RECEIVED"],"dimension":"RULE_KNOWLEDGE","format":"TRUE_FALSE","context":"PHARMA","tested_point":"RECOGNITION_TIMING_TF","difficulty":"BEGINNER","estimated_time_s":30,"lesson_id":"LS.IFRS2.000002","review":{"standard_id":"IFRS2","lesson_id":"LS.IFRS2.000002","section_id":"understand"},"references":["IFRS 2 §7","IFRS 2 §8","IFRS 2 §14"],"exercise":{"prompt":{"fr":"","en":"A laboratory that pays researchers with options on its shares recognises the expense as the research is carried out, not on the date the options are exercised.","es":""},"explanation":{"fr":"","en":"Services are recognised as they are rendered; the exercise of the options is a later event (IFRS 2, para. 15).","es":""},"common_error":{"fr":"","en":"Waiting for the options to be exercised before recognising the expense.","es":""},"format":"TRUE_FALSE","answer":true},"scope":"CORE_STUDENT"},{"key":"LX.IFRS2.000012","source":"V2","standard_id":"IFRS2","concept_ids":["IFRS2.RECOGNITION.WHEN_RECEIVED"],"dimension":"RECOGNITION","format":"SINGLE_CHOICE","context":"MANUFACTURING","tested_point":"DEBIT_ASSET_OR_EXPENSE","difficulty":"INTERMEDIATE","estimated_time_s":60,"lesson_id":"LS.IFRS2.000002","review":{"standard_id":"IFRS2","lesson_id":"LS.IFRS2.000002","section_id":"rule-expense-or-asset"},"references":["IFRS 2 §7","IFRS 2 §8","IFRS 2 §14"],"exercise":{"prompt":{"fr":"","en":"A company receives a machine and pays for it with 2,200 of its own shares; the machine meets the criteria of a fixed asset. What is the debit of the entry?","es":""},"explanation":{"fr":"","en":"The debit follows what is received: an item that meets the criteria of an asset is recorded as an asset (IFRS 2), the credit being an increase in equity.","es":""},"common_error":{"fr":"","en":"Expensing whatever is paid for with shares.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"A fixed asset, because the item received meets the criteria of an asset","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"An expense, because payment is made with securities and not with cash","es":""},"correct":false,"feedback":{"fr":"","en":"The currency of payment does not determine the debit: an item that meets the criteria of an asset is recorded as an asset.","es":""}},{"id":"C","text":{"fr":"","en":"Equity, because issuing shares increases equity","es":""},"correct":false,"feedback":{"fr":"","en":"Equity is here on the credit side; the debit records what the entity receives.","es":""}},{"id":"D","text":{"fr":"","en":"A liability, because the machine was delivered before the securities were actually handed over","es":""},"correct":false,"feedback":{"fr":"","en":"A liability is a credit; the debit records the item received.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS2.000013","source":"V2","standard_id":"IFRS2","concept_ids":["IFRS2.RECOGNITION.WHEN_RECEIVED"],"dimension":"JOURNAL_ENTRY","format":"JOURNAL_ENTRY","context":"MEDIA","tested_point":"IMMEDIATE_VESTING_ENTRY","difficulty":"INTERMEDIATE","estimated_time_s":120,"lesson_id":"LS.IFRS2.000002","review":{"standard_id":"IFRS2","lesson_id":"LS.IFRS2.000002","section_id":"entry-immediate"},"references":["IFRS 2 §7","IFRS 2 §8","IFRS 2 §14"],"exercise":{"prompt":{"fr":"","en":"Studio Ravel SA grants a graphic designer 2,500 Ravel shares for a redesign job already delivered, with no vesting condition at all. Fair value of the share at the grant date: €8. Post the entry at the grant date (accounts: case convention).","es":""},"explanation":{"fr":"","en":"2,500 shares × €8 = €20,000. The services are already received and nothing makes the grant conditional: the expense is recognised in full at the grant date, with an increase in equity of €20,000 (IFRS 2).","es":""},"common_error":{"fr":"","en":"Crediting a liability because no cash has been paid.","es":""},"format":"JOURNAL_ENTRY","accounts":[{"id":"exp","text":{"fr":"","en":"Services expense (share-based payment)","es":""}},{"id":"eq","text":{"fr":"","en":"Equity (share-based payment reserve)","es":""}},{"id":"liab","text":{"fr":"","en":"Share-based payment liability","es":""}},{"id":"cash","text":{"fr":"","en":"Cash","es":""}}],"lines":[{"id":"l1","account":"exp","side":"DEBIT","amount":20000,"given":["account","side"]},{"id":"l2","account":"eq","side":"CREDIT","amount":20000,"given":["account","side"]}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS2.000014","source":"V2","standard_id":"IFRS2","concept_ids":["IFRS2.RECOGNITION.WHEN_RECEIVED"],"dimension":"APPLICATION","format":"ORDERING","context":"GENERIC","tested_point":"RECOGNITION_REASONING_ORDER","difficulty":"INTERMEDIATE","estimated_time_s":75,"lesson_id":"LS.IFRS2.000002","review":{"standard_id":"IFRS2","lesson_id":"LS.IFRS2.000002","section_id":"rule-expense-or-asset"},"references":["IFRS 2 §7","IFRS 2 §8","IFRS 2 §14"],"exercise":{"prompt":{"fr":"","en":"Put in order the steps for analysing a grant of instruments in payment for services.","es":""},"explanation":{"fr":"","en":"One first identifies what is received, then derives the debit (asset or expense), establishes the settlement method that gives the credit, and finally posts the full entry.","es":""},"common_error":{"fr":"","en":"Fixing the credit before identifying what is received.","es":""},"format":"ORDERING","steps":[{"id":"s1","text":{"fr":"","en":"Identify the goods or services received and the date of their receipt","es":""}},{"id":"s2","text":{"fr":"","en":"Determine whether what is received is an asset or an expense","es":""}},{"id":"s3","text":{"fr":"","en":"Establish the settlement method: securities or cash","es":""}},{"id":"s4","text":{"fr":"","en":"Post the entry: debit asset or expense, credit equity or liability","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS2.000015","source":"V2","standard_id":"IFRS2","concept_ids":["IFRS2.RECOGNITION.EQUITY_VS_LIABILITY"],"dimension":"RECOGNITION","format":"MATCHING","context":"GENERIC","tested_point":"CREDIT_ACCOUNT_MATCH","difficulty":"BEGINNER","estimated_time_s":60,"lesson_id":"LS.IFRS2.000002","review":{"standard_id":"IFRS2","lesson_id":"LS.IFRS2.000002","section_id":"rule-credit"},"references":["IFRS 2 §7","IFRS 2 §30"],"exercise":{"prompt":{"fr":"","en":"Match each plan with the credit side of its expense.","es":""},"explanation":{"fr":"","en":"The plan that leads to the issue of securities has equity as its credit side; the cash-paid bonus creates a liability (IFRS 2).","es":""},"common_error":{"fr":"","en":"Classifying the price-indexed bonus as equity because it depends on the share.","es":""},"format":"MATCHING","left":[{"id":"L1","text":{"fr":"","en":"Options on the entity's shares, which will lead to the issue of securities","es":""}},{"id":"L2","text":{"fr":"","en":"Euro bonus indexed on the share price, paid in cash","es":""}}],"right":[{"id":"R1","text":{"fr":"","en":"An increase in equity","es":""}},{"id":"R2","text":{"fr":"","en":"A liability","es":""}},{"id":"R3","text":{"fr":"","en":"A receivable","es":""}}],"pairs":[{"left":"L1","right":"R1"},{"left":"L2","right":"R2"}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS2.000016","source":"V2","standard_id":"IFRS2","concept_ids":["IFRS2.RECOGNITION.EQUITY_VS_LIABILITY"],"dimension":"JOURNAL_ENTRY","format":"JOURNAL_ENTRY","context":"HOSPITALITY","tested_point":"CASH_SETTLED_PERIOD_ENTRY","difficulty":"INTERMEDIATE","estimated_time_s":120,"lesson_id":"LS.IFRS2.000002","review":{"standard_id":"IFRS2","lesson_id":"LS.IFRS2.000002","section_id":"entry-two-modes"},"references":["IFRS 2 §7","IFRS 2 §30"],"exercise":{"prompt":{"fr":"","en":"Hôtels Ostrel SA granted its directors rights payable in cash according to the share price. The expense for the year, calculated by the entity, is €38,000. Post the entry for the expense (accounts: case convention).","es":""},"explanation":{"fr":"","en":"The plan is cash-settled: the expense of €38,000 has a liability as its credit side, not an equity reserve (IFRS 2). No cash has yet been paid out.","es":""},"common_error":{"fr":"","en":"Crediting the share-based payment reserve because the plan is linked to the share.","es":""},"format":"JOURNAL_ENTRY","accounts":[{"id":"exp","text":{"fr":"","en":"Services expense (share-based payment)","es":""}},{"id":"res","text":{"fr":"","en":"Share-based payment reserve","es":""}},{"id":"liab","text":{"fr":"","en":"Share-based payment liability","es":""}},{"id":"cash","text":{"fr":"","en":"Cash","es":""}}],"lines":[{"id":"l1","account":"exp","side":"DEBIT","amount":38000,"given":["account","side"]},{"id":"l2","account":"liab","side":"CREDIT","amount":38000,"given":["account","side"]}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS2.000017","source":"V2","standard_id":"IFRS2","concept_ids":["IFRS2.RECOGNITION.EQUITY_VS_LIABILITY","IFRS2.RECOGNITION.WHEN_RECEIVED"],"dimension":"RECOGNITION","format":"CLASSIFICATION","context":"RETAIL","tested_point":"CREDIT_SORTING","difficulty":"INTERMEDIATE","estimated_time_s":90,"lesson_id":"LS.IFRS2.000002","review":{"standard_id":"IFRS2","lesson_id":"LS.IFRS2.000002","section_id":"rule-credit"},"references":["IFRS 2 §7","IFRS 2 §30","IFRS 2 §8","IFRS 2 §14"],"exercise":{"prompt":{"fr":"","en":"Sort each situation according to the credit side of the expense recognised.","es":""},"explanation":{"fr":"","en":"When the entity will hand over its own securities (options, shares), the credit side is an increase in equity; when it will pay out cash for an amount based on the price, it is a liability (IFRS 2).","es":""},"common_error":{"fr":"","en":"Reasoning on the amount rather than on what the entity delivers.","es":""},"format":"CLASSIFICATION","categories":[{"id":"EQ","text":{"fr":"","en":"Equity","es":""}},{"id":"LI","text":{"fr":"","en":"Liability","es":""}}],"items":[{"id":"i1","text":{"fr":"","en":"Share options granted to sales staff, to be exercised by subscribing for new shares","es":""},"category":"EQ"},{"id":"i2","text":{"fr":"","en":"Shares handed to a lawyer in payment of the year's fees","es":""},"category":"EQ"},{"id":"i3","text":{"fr":"","en":"Cash payment equal to the rise in the share price over three years","es":""},"category":"LI"},{"id":"i4","text":{"fr":"","en":"Euro bonus equal to the value of 300 shares, payable at the end of the plan","es":""},"category":"LI"}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS2.000018","source":"V2","standard_id":"IFRS2","concept_ids":["IFRS2.RECOGNITION.EQUITY_VS_LIABILITY","IFRS2.RECOGNITION.WHEN_RECEIVED"],"dimension":"ANALYSIS","format":"ERROR_SPOT","context":"GENERIC","tested_point":"RECOGNITION_ERROR_SPOT","difficulty":"ADVANCED","estimated_time_s":90,"lesson_id":"LS.IFRS2.000002","review":{"standard_id":"IFRS2","lesson_id":"LS.IFRS2.000002","section_id":"rule-credit"},"references":["IFRS 2 §7","IFRS 2 §30","IFRS 2 §8","IFRS 2 §14"],"exercise":{"prompt":{"fr":"","en":"Spot the erroneous statements about accounting for a share-based payment transaction.","es":""},"explanation":{"fr":"","en":"The statement on the debit (an expense when the services received do not meet the criteria of an asset) and the one on the cash-settled plan whose credit side is a liability are correct (IFRS 2). The statement that credits a liability for an equity-settled plan, which reverses the credit sides, and the one that dates the expense at exercise, although it follows the services received (IFRS 2, para. 15), are wrong.","es":""},"common_error":{"fr":"","en":"Dating the expense at exercise and crediting a liability for a plan in securities.","es":""},"format":"ERROR_SPOT","statements":[{"id":"s2","text":{"fr":"","en":"For an equity-settled plan, the expense has a liability as its credit side until the options are exercised.","es":""},"erroneous":true,"correction":{"fr":"","en":"The credit side of an equity-settled plan is an increase in equity as soon as the expense is recognised.","es":""}},{"id":"s1","text":{"fr":"","en":"The debit of a grant to employees is an expense when the services received do not meet the criteria of an asset.","es":""},"erroneous":false},{"id":"s3","text":{"fr":"","en":"For a cash-settled plan, the credit side of the expense is a liability.","es":""},"erroneous":false},{"id":"s4","text":{"fr":"","en":"The expense of an option plan is recognised on the exercise date, since that is when the securities are issued.","es":""},"erroneous":true,"correction":{"fr":"","en":"The expense follows the receipt of the services, well before the options are exercised.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS2.000019","source":"V2","standard_id":"IFRS2","concept_ids":["IFRS2.SCOPE.GRANT_DATE"],"dimension":"RULE_KNOWLEDGE","format":"SINGLE_CHOICE","context":"GENERIC","tested_point":"GRANT_DATE_DEFINITION","difficulty":"BEGINNER","estimated_time_s":45,"lesson_id":"LS.IFRS2.000003","review":{"standard_id":"IFRS2","lesson_id":"LS.IFRS2.000003","section_id":"rule-grant-date"},"references":["IFRS 2"],"exercise":{"prompt":{"fr":"","en":"Which definition matches the grant date?","es":""},"explanation":{"fr":"","en":"The grant date is that of the agreement on the terms, all necessary approvals having been obtained (IFRS 2, Appendix A).","es":""},"common_error":{"fr":"","en":"Confusing the grant date with the end of the vesting period.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The date on which the options can first be exercised","es":""},"correct":false,"feedback":{"fr":"","en":"That is the end of the vesting period, which comes after the grant date.","es":""}},{"id":"B","text":{"fr":"","en":"The date on which the board decides to prepare the plan","es":""},"correct":false,"feedback":{"fr":"","en":"An internal intention is not an agreement with the counterparty.","es":""}},{"id":"C","text":{"fr":"","en":"The date on which the securities are registered in the beneficiary's name","es":""},"correct":false,"feedback":{"fr":"","en":"Registration of the securities occurs on delivery, well after the terms are agreed.","es":""}},{"id":"D","text":{"fr":"","en":"The date on which the entity and the counterparty agree on the terms, with the necessary approvals obtained","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS2.000020","source":"V2","standard_id":"IFRS2","concept_ids":["IFRS2.SCOPE.GRANT_DATE"],"dimension":"APPLICATION","format":"SINGLE_CHOICE","context":"BANKING","tested_point":"GRANT_DATE_TERMS_NOT_SET","difficulty":"ADVANCED","estimated_time_s":90,"lesson_id":"LS.IFRS2.000003","review":{"standard_id":"IFRS2","lesson_id":"LS.IFRS2.000003","section_id":"rule-grant-date"},"references":["IFRS 2"],"exercise":{"prompt":{"fr":"","en":"On 20 April, the board of Pernel Banque SA approves a free share plan and announces it to employees; the number of shares of each employee will be set by the board, at its discretion, on 30 June and then communicated. Employees work under the plan from April. What is the grant date, and how is the period from April to June treated?","es":""},"explanation":{"fr":"","en":"The grant date requires terms that are settled and understood by both parties: as long as the board has not set the number of shares, the agreement is not complete. It is therefore 30 June; since services began in April, the grant-date fair value is estimated for that period, then trued up (IFRS 2, Appendix A).","es":""},"common_error":{"fr":"","en":"Using the approval date while the terms of the agreement remain to be set.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"20 April, since the board approved the plan and announced it to employees that day","es":""},"correct":false,"feedback":{"fr":"","en":"Approval is not enough: with the number of shares still to be set, the two parties do not yet share the same understanding of the terms.","es":""}},{"id":"B","text":{"fr":"","en":"30 June, when the number of shares is set; the fair value is estimated for April to June","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"At the end of the vesting period, when the number of shares actually delivered is known","es":""},"correct":false,"feedback":{"fr":"","en":"Delivery does not set the grant date: it occurs as soon as the terms are settled and understood, here on 30 June.","es":""}},{"id":"D","text":{"fr":"","en":"Two dates: 20 April for the services from April to June, then 30 June for the following services","es":""},"correct":false,"feedback":{"fr":"","en":"An arrangement has only one grant date; earlier services are measured on an estimate of the fair value at that single date.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS2.000021","source":"V2","standard_id":"IFRS2","concept_ids":["IFRS2.SCOPE.GRANT_DATE","IFRS2.MEASUREMENT.EMPLOYEES_GRANT_DATE_FV"],"dimension":"CALCULATION","format":"CALCULATION","context":"BIOTECH","tested_point":"GRANT_DATE_ESTIMATE_TRUE_UP","difficulty":"INTERMEDIATE","estimated_time_s":150,"lesson_id":"LS.IFRS2.000003","review":{"standard_id":"IFRS2","lesson_id":"LS.IFRS2.000003","section_id":"numeric-grant-date"},"references":["IFRS 2","IFRS 2 §11"],"exercise":{"prompt":{"fr":"","en":"Lumera Bio SA closes on 30 June while the grant date (15 July) has not yet arrived; services began on 1 January. Before approval, the estimated total cost is €450,000; at the grant date, the final fair value gives a total cost of €510,000. The share of the vesting period elapsed at the correction date is 40% (case data). Calculate the estimated cumulative expense, the final cumulative expense and the correction to recognise.","es":""},"explanation":{"fr":"","en":"€450,000 × 40% = €180,000; €510,000 × 40% = €204,000; correction: €204,000 − €180,000 = €24,000. The final value is that of the grant date (IFRS 2).","es":""},"common_error":{"fr":"","en":"Keeping the provisional estimate without correcting it once the grant date is established.","es":""},"format":"CALCULATION","data":[{"label":{"fr":"","en":"Estimated total cost","es":""},"value":"450000","unit":"EUR"},{"label":{"fr":"","en":"Total cost at the grant date","es":""},"value":"510000","unit":"EUR"},{"label":{"fr":"","en":"Share elapsed","es":""},"value":"40","unit":"PERCENT"}],"steps":[{"id":"s1","label":{"fr":"","en":"Estimated cumulative expense","es":""},"answer":180000,"tolerance":0,"unit":"EUR"},{"id":"s2","label":{"fr":"","en":"Final cumulative expense","es":""},"answer":204000,"tolerance":0,"unit":"EUR"},{"id":"s3","label":{"fr":"","en":"Correction to recognise","es":""},"answer":24000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"s1","meaning":{"fr":"","en":"Estimated cumulative expense","es":""},"expression":"a * b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Estimated total cost","es":""},"value":450000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Share elapsed","es":""},"value":40,"unit":"PERCENT"}],"result":180000,"unit":"EUR"},{"step":"s2","meaning":{"fr":"","en":"Final cumulative expense","es":""},"expression":"a * b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Total cost at the grant date","es":""},"value":510000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Share elapsed","es":""},"value":40,"unit":"PERCENT"}],"result":204000,"unit":"EUR"},{"step":"s3","meaning":{"fr":"","en":"Correction to recognise","es":""},"expression":"a - b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Final cumulative expense","es":""},"value":204000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Estimated cumulative expense","es":""},"value":180000,"unit":"EUR"}],"result":24000,"unit":"EUR"}],"references":["REF.IFRS2.APPA.GRANTDATE","REF.IFRS2.11"]}},"scope":"CORE_STUDENT"},{"key":"LX.IFRS2.000022","source":"V2","standard_id":"IFRS2","concept_ids":["IFRS2.SCOPE.GRANT_DATE"],"dimension":"ANALYSIS","format":"CLASSIFICATION","context":"GENERIC","tested_point":"GRANT_DATE_CLASSIFY_EVENTS","difficulty":"INTERMEDIATE","estimated_time_s":90,"lesson_id":"LS.IFRS2.000003","review":{"standard_id":"IFRS2","lesson_id":"LS.IFRS2.000003","section_id":"rule-grant-date"},"references":["IFRS 2"],"exercise":{"prompt":{"fr":"","en":"Sort each event of an option plan according to whether or not it can be the grant date.","es":""},"explanation":{"fr":"","en":"Only the event where the terms are agreed and all approvals obtained can be the grant date (IFRS 2, Appendix A); a proposal awaiting a vote and the first exercise date are not.","es":""},"common_error":{"fr":"","en":"Taking any event of the plan as the grant date.","es":""},"format":"CLASSIFICATION","categories":[{"id":"YES","text":{"fr":"","en":"Can be the grant date","es":""}},{"id":"NO","text":{"fr":"","en":"Cannot be the grant date","es":""}}],"items":[{"id":"i1","text":{"fr":"","en":"The meeting approves the plan whose terms the beneficiaries have already accepted","es":""},"category":"YES"},{"id":"i2","text":{"fr":"","en":"The beneficiaries sign the agreement after all internal approvals","es":""},"category":"YES"},{"id":"i3","text":{"fr":"","en":"The remuneration committee proposes a plan proposal still subject to a vote","es":""},"category":"NO"},{"id":"i4","text":{"fr":"","en":"The options become exercisable three years later","es":""},"category":"NO"}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS2.000023","source":"V2","standard_id":"IFRS2","concept_ids":["IFRS2.MEASUREMENT.EMPLOYEES_GRANT_DATE_FV"],"dimension":"RULE_KNOWLEDGE","format":"TRUE_FALSE","context":"GENERIC","tested_point":"MEASURE_INSTRUMENTS_NOT_SERVICES","difficulty":"BEGINNER","estimated_time_s":30,"lesson_id":"LS.IFRS2.000003","review":{"standard_id":"IFRS2","lesson_id":"LS.IFRS2.000003","section_id":"understand"},"references":["IFRS 2 §11","IFRS 2"],"exercise":{"prompt":{"fr":"","en":"For a grant of options to employees, the entity measures the cost by measuring the equity instruments granted, not by directly estimating the market value of the work done.","es":""},"explanation":{"fr":"","en":"The value of the services generally cannot be estimated reliably: the equity instruments granted are measured (IFRS 2).","es":""},"common_error":{"fr":"","en":"Measuring the work and not the instruments handed over.","es":""},"format":"TRUE_FALSE","answer":true},"scope":"CORE_STUDENT"},{"key":"LX.IFRS2.000024","source":"V2","standard_id":"IFRS2","concept_ids":["IFRS2.MEASUREMENT.EMPLOYEES_GRANT_DATE_FV","IFRS2.MEASUREMENT.NO_REMEASUREMENT_AFTER_GRANT"],"dimension":"APPLICATION","format":"SINGLE_CHOICE","context":"AUTOMOTIVE","tested_point":"WHICH_DATE_FAIR_VALUE","difficulty":"INTERMEDIATE","estimated_time_s":75,"lesson_id":"LS.IFRS2.000003","review":{"standard_id":"IFRS2","lesson_id":"LS.IFRS2.000003","section_id":"understand"},"references":["IFRS 2 §11","IFRS 2","IFRS 2 §27"],"exercise":{"prompt":{"fr":"","en":"An equity-settled option plan has a fair value of €7 per option at the grant date, €11 at the end of the first year and €14 at the vesting date. Which value is the basis for the plan's total expense?","es":""},"explanation":{"fr":"","en":"For an equity-settled grant, the fair value is measured at the grant date (€7) and is not remeasured (IFRS 2).","es":""},"common_error":{"fr":"","en":"Using the reporting-date fair value instead of the grant date.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"€11, the fair value at the end of the first year, which is the last observed value","es":""},"correct":false,"feedback":{"fr":"","en":"A reporting date is not the measurement date of an equity grant: the value of the grant stays fixed.","es":""}},{"id":"B","text":{"fr":"","en":"€14, the fair value at the vesting date, which reflects the final real cost for the entity","es":""},"correct":false,"feedback":{"fr":"","en":"The vesting-date value is that of a remeasured liability; an equity grant is not remeasured.","es":""}},{"id":"C","text":{"fr":"","en":"€7, the fair value at the grant date","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"€7, but revised at each reporting date according to the share price","es":""},"correct":false,"feedback":{"fr":"","en":"No average is provided for: a single date counts, the grant date.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS2.000025","source":"V2","standard_id":"IFRS2","concept_ids":["IFRS2.MEASUREMENT.EMPLOYEES_GRANT_DATE_FV"],"dimension":"RULE_KNOWLEDGE","format":"FILL_BLANK","context":"ENERGY","tested_point":"EMPLOYEE_MEASUREMENT_FILL_BLANK","difficulty":"BEGINNER","estimated_time_s":60,"lesson_id":"LS.IFRS2.000003","review":{"standard_id":"IFRS2","lesson_id":"LS.IFRS2.000003","section_id":"understand"},"references":["IFRS 2 §11","IFRS 2"],"exercise":{"prompt":{"fr":"","en":"Complete the sentence.","es":""},"explanation":{"fr":"","en":"The equity instruments granted are measured, at the grant date (IFRS 2).","es":""},"common_error":{"fr":"","en":"Choosing the reporting or exercise date as the measurement date.","es":""},"format":"FILL_BLANK","text":{"fr":"","en":"Employee services are measured by the fair value of the {{objet}} granted, measured at the {{date}} date.","es":""},"blanks":[{"id":"objet","mode":"CHOICE","choices":[{"id":"instr","text":{"fr":"","en":"equity instruments","es":""}},{"id":"serv","text":{"fr":"","en":"substitute services","es":""}}],"answer":"instr"},{"id":"date","mode":"CHOICE","choices":[{"id":"grant","text":{"fr":"","en":"grant","es":""}},{"id":"close","text":{"fr":"","en":"reporting","es":""}},{"id":"exer","text":{"fr":"","en":"exercise","es":""}}],"answer":"grant"}]},"scope":"CORE_STUDENT","reserve":true},{"key":"LX.IFRS2.000026","source":"V2","standard_id":"IFRS2","concept_ids":["IFRS2.MEASUREMENT.NO_REMEASUREMENT_AFTER_GRANT"],"dimension":"RULE_KNOWLEDGE","format":"TRUE_FALSE","context":"TELECOM","tested_point":"NO_REMEASUREMENT_PRICE_FALL","difficulty":"BEGINNER","estimated_time_s":30,"lesson_id":"LS.IFRS2.000003","review":{"standard_id":"IFRS2","lesson_id":"LS.IFRS2.000003","section_id":"rule-no-remeasurement"},"references":["IFRS 2 §11","IFRS 2 §27"],"exercise":{"prompt":{"fr":"","en":"If the share price collapses after the grant date, the entity does not reduce the expense of an equity-settled option plan to reflect the fall.","es":""},"explanation":{"fr":"","en":"The grant-date fair value is not remeasured: the fall in the price does not reduce the expense (IFRS 2).","es":""},"common_error":{"fr":"","en":"Applying the remeasurement of a liability to an equity grant.","es":""},"format":"TRUE_FALSE","answer":true},"scope":"CORE_STUDENT"},{"key":"LX.IFRS2.000027","source":"V2","standard_id":"IFRS2","concept_ids":["IFRS2.MEASUREMENT.NO_REMEASUREMENT_AFTER_GRANT"],"dimension":"JOURNAL_ENTRY","format":"JOURNAL_ENTRY","context":"LUXURY","tested_point":"EXERCISE_ENTRY_PARTIAL","difficulty":"INTERMEDIATE","estimated_time_s":120,"lesson_id":"LS.IFRS2.000003","review":{"standard_id":"IFRS2","lesson_id":"LS.IFRS2.000003","section_id":"entry-exercise"},"references":["IFRS 2 §11","IFRS 2 §27"],"exercise":{"prompt":{"fr":"","en":"Maison Corvelle SA sees 3,400 of its options exercised. Exercise price: €21 per option; fair value at the grant date: €6 per option; the reserve recognised for these options matches that value. Post the exercise entry (accounts: case convention).","es":""},"explanation":{"fr":"","en":"Cash: 3,400 × €21 = €71,400; reserve cleared: 3,400 × €6 = €20,400; capital and premium: €71,400 + €20,400 = €91,800. No remeasurement and no new expense (IFRS 2).","es":""},"common_error":{"fr":"","en":"Recording the day's price at exercise instead of the grant-date fair value.","es":""},"format":"JOURNAL_ENTRY","accounts":[{"id":"cash","text":{"fr":"","en":"Cash","es":""}},{"id":"res","text":{"fr":"","en":"Share-based payment reserve","es":""}},{"id":"cap","text":{"fr":"","en":"Share capital and premium","es":""}},{"id":"exp","text":{"fr":"","en":"Services expense (share-based payment)","es":""}}],"lines":[{"id":"l1","account":"cash","side":"DEBIT","amount":71400,"given":["account","side"]},{"id":"l2","account":"res","side":"DEBIT","amount":20400,"given":["account","side"]},{"id":"l3","account":"cap","side":"CREDIT","amount":91800,"given":["account","side"]}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS2.000028","source":"V2","standard_id":"IFRS2","concept_ids":["IFRS2.MEASUREMENT.NO_REMEASUREMENT_AFTER_GRANT","IFRS2.MEASUREMENT.EMPLOYEES_GRANT_DATE_FV"],"dimension":"ANALYSIS","format":"MULTIPLE_CHOICE","context":"RETAIL","tested_point":"EQUITY_SETTLED_FEATURES_MC","difficulty":"INTERMEDIATE","estimated_time_s":75,"lesson_id":"LS.IFRS2.000003","review":{"standard_id":"IFRS2","lesson_id":"LS.IFRS2.000003","section_id":"rule-no-remeasurement"},"references":["IFRS 2 §11","IFRS 2 §27","IFRS 2"],"exercise":{"prompt":{"fr":"","en":"Which statements are correct for an equity-settled grant to employees? (several answers)","es":""},"explanation":{"fr":"","en":"An equity grant is measured at the grant date, without remeasurement, with an equity credit (IFRS 2). The price at exercise recalculates nothing.","es":""},"common_error":{"fr":"","en":"Applying the rules of a cash liability to an equity grant.","es":""},"format":"MULTIPLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The expense is recalculated on exercise with the day's price","es":""},"correct":false,"feedback":{"fr":"","en":"The exercise-day price plays no part in the expense of an equity grant.","es":""}},{"id":"B","text":{"fr":"","en":"The fair value of the instruments is measured at the grant date","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"The grant-date fair value is not remeasured at later reporting dates","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"The credit side of the expense is a liability until exercise","es":""},"correct":false,"feedback":{"fr":"","en":"The credit side of an equity grant is an equity item, not a liability.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS2.000029","source":"V2","standard_id":"IFRS2","concept_ids":["IFRS2.MEASUREMENT.NON_EMPLOYEES_PRESUMPTION"],"dimension":"RECOGNITION","format":"MATCHING","context":"CONSTRUCTION","tested_point":"NON_EMPLOYEE_BASIS_MATCH","difficulty":"INTERMEDIATE","estimated_time_s":75,"lesson_id":"LS.IFRS2.000004","review":{"standard_id":"IFRS2","lesson_id":"LS.IFRS2.000004","section_id":"rule-presumption"},"references":["IFRS 2 §10","IFRS 2 §13"],"exercise":{"prompt":{"fr":"","en":"Match each situation with the measurement basis used in principle.","es":""},"explanation":{"fr":"","en":"For an employee the instruments are measured at the grant date; for a supplier whose value is estimable the goods or services received are measured at the date of receipt (IFRS 2, para. 13).","es":""},"common_error":{"fr":"","en":"Applying the same basis to every counterparty.","es":""},"format":"MATCHING","left":[{"id":"L1","text":{"fr":"","en":"Options are granted to an employee director","es":""}},{"id":"L2","text":{"fr":"","en":"Shares pay a contractor whose work has known market prices","es":""}}],"right":[{"id":"R1","text":{"fr":"","en":"Fair value of the instruments at the grant date","es":""}},{"id":"R2","text":{"fr":"","en":"Fair value of the work at the date of receipt","es":""}},{"id":"R3","text":{"fr":"","en":"Nominal value of the shares handed over","es":""}}],"pairs":[{"left":"L1","right":"R1"},{"left":"L2","right":"R2"}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS2.000030","source":"V2","standard_id":"IFRS2","concept_ids":["IFRS2.MEASUREMENT.NON_EMPLOYEES_PRESUMPTION"],"dimension":"APPLICATION","format":"SINGLE_CHOICE","context":"LOGISTICS","tested_point":"NON_EMPLOYEE_SPREAD_MEASUREMENT","difficulty":"INTERMEDIATE","estimated_time_s":60,"lesson_id":"LS.IFRS2.000004","review":{"standard_id":"IFRS2","lesson_id":"LS.IFRS2.000004","section_id":"rule-presumption"},"references":["IFRS 2 §10","IFRS 2 §13"],"exercise":{"prompt":{"fr":"","en":"A provider renders a service over 12 months, paid with shares of the entity, and its fee is known. At what date is the service measured?","es":""},"explanation":{"fr":"","en":"When the presumption holds, the fair value is measured at the date the goods are obtained or the service is rendered, hence at each receipt date if spread (IFRS 2, para. 13).","es":""},"common_error":{"fr":"","en":"Fixing the measurement at contract signature.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"At the contract signature date, to fix the amount definitively","es":""},"correct":false,"feedback":{"fr":"","en":"Measurement follows the receipt of the service, not the contract signature, when it is spread.","es":""}},{"id":"B","text":{"fr":"","en":"At each date on which the service is rendered, since it is spread over time","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"At the reporting date, for the entire duration of the service","es":""},"correct":false,"feedback":{"fr":"","en":"A reporting date is not a receipt date; it does not fix the value of the service.","es":""}},{"id":"D","text":{"fr":"","en":"At the date of the last delivery, when the service is completely finished","es":""},"correct":false,"feedback":{"fr":"","en":"One cannot wait for the end: the expense follows the receipt of the service as it is rendered.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS2.000031","source":"V2","standard_id":"IFRS2","concept_ids":["IFRS2.MEASUREMENT.NON_EMPLOYEES_PRESUMPTION"],"dimension":"PROFESSIONAL_JUDGMENT","format":"SINGLE_CHOICE","context":"NONPROFIT","tested_point":"PRESUMPTION_REBUTTAL_JUDGEMENT","difficulty":"ADVANCED","estimated_time_s":120,"lesson_id":"LS.IFRS2.000004","review":{"standard_id":"IFRS2","lesson_id":"LS.IFRS2.000004","section_id":"judgment"},"references":["IFRS 2 §10","IFRS 2 §13","IFRS 2 §13A"],"exercise":{"prompt":{"fr":"","en":"A company hands shares of its own to a partner foundation \"for its general support\"; no identifiable good or service is received in exchange. How does the company measure what it receives?","es":""},"explanation":{"fr":"","en":"What the company receives that is identifiable (nothing) is less than the fair value of the shares delivered: this usually signals that the entity has received, or will receive, goods or services it cannot identify. They are measured as the difference between the fair value of the share-based payment and that of the identifiable goods or services, at the grant date (IFRS 2, para. 13A). This is not a rebuttal of the presumption, which concerns identifiable goods or services (IFRS 2, para. 13).","es":""},"common_error":{"fr":"","en":"Treating the absence of an identifiable good or service as a rebuttal of the presumption, or concluding that there is nothing to recognise.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"It measures unidentifiable goods or services as the difference with the fair value of the shares delivered, at the grant date","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"It measures the foundation's support using a usual donation scale, as an identifiable service","es":""},"correct":false,"feedback":{"fr":"","en":"No identifiable service is received: what is received is measured as the difference with the fair value of the shares delivered (IFRS 2, para. 13A).","es":""}},{"id":"C","text":{"fr":"","en":"The transaction falls outside IFRS 2, because a donation is not a payment for goods or services","es":""},"correct":false,"feedback":{"fr":"","en":"The standard applies even when the entity cannot identify the goods or services received: identifiable consideration below the fair value of the shares indicates other goods or services received (IFRS 2, para. 13A).","es":""}},{"id":"D","text":{"fr":"","en":"It recognises nothing, because a non-profit recipient renders no service to the entity","es":""},"correct":false,"feedback":{"fr":"","en":"The nature of the recipient decides nothing: the gap between the identifiable consideration and the fair value of the shares is measured at the grant date (IFRS 2, para. 13A).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS2.000032","source":"V2","standard_id":"IFRS2","concept_ids":["IFRS2.MEASUREMENT.NON_EMPLOYEES_PRESUMPTION"],"dimension":"ANALYSIS","format":"MULTIPLE_CHOICE","context":"MEDIA","tested_point":"PRESUMPTION_FACTS_MC","difficulty":"INTERMEDIATE","estimated_time_s":75,"lesson_id":"LS.IFRS2.000004","review":{"standard_id":"IFRS2","lesson_id":"LS.IFRS2.000004","section_id":"judgment"},"references":["IFRS 2 §10","IFRS 2 §13"],"exercise":{"prompt":{"fr":"","en":"Which facts support the conclusion that the fair value of the service received is reliably estimable? (several answers)","es":""},"explanation":{"fr":"","en":"An identifiable service with a point of comparison such as a known rate supports a reliable estimate (IFRS 2, para. 13); the value of the shares handed over or the lack of detail does not.","es":""},"common_error":{"fr":"","en":"Deducing the value of the service from that of the shares handed over.","es":""},"format":"MULTIPLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The shares handed over have a high value, so the service must be worth as much","es":""},"correct":false,"feedback":{"fr":"","en":"The value of the shares does not prove that of the service: that is precisely the question asked.","es":""}},{"id":"B","text":{"fr":"","en":"The provider has not detailed what it will supply in exchange for the shares","es":""},"correct":false,"feedback":{"fr":"","en":"The lack of detail makes the estimate harder, it does not support it.","es":""}},{"id":"C","text":{"fr":"","en":"The service is specific and identifiable, with a defined deliverable","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"The provider charges other customers for the same service at a known rate","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS2.000034","source":"V2","standard_id":"IFRS2","concept_ids":["IFRS2.MEASUREMENT.FAIR_VALUE_ESTIMATION"],"dimension":"RECOGNITION","format":"CLASSIFICATION","context":"TECH","tested_point":"MODEL_INPUTS_SORTING","difficulty":"INTERMEDIATE","estimated_time_s":90,"lesson_id":"LS.IFRS2.000004","review":{"standard_id":"IFRS2","lesson_id":"LS.IFRS2.000004","section_id":"rule-model-inputs"},"references":["IFRS 2 §47"],"exercise":{"prompt":{"fr":"","en":"Sort each item according to whether or not it is a usual input of an option valuation model.","es":""},"explanation":{"fr":"","en":"Volatility, dividends, life and risk-free rate are usual inputs, whose values the entity chooses according to its situation; the standard imposes none of them (IFRS 2). The holder's salary does not enter the value of an option.","es":""},"common_error":{"fr":"","en":"Mixing up data about the holder with data about the market or the entity, or believing that a volatility is imposed by the standard.","es":""},"format":"CLASSIFICATION","categories":[{"id":"IN","text":{"fr":"","en":"Model input","es":""}},{"id":"OUT","text":{"fr":"","en":"Not a usual input","es":""}}],"items":[{"id":"i1","text":{"fr":"","en":"Expected volatility of the share price","es":""},"category":"IN"},{"id":"i2","text":{"fr":"","en":"Expected dividends during the life of the option","es":""},"category":"IN"},{"id":"i3","text":{"fr":"","en":"Expected life of the option","es":""},"category":"IN"},{"id":"i4","text":{"fr":"","en":"Annual salary of the option holder","es":""},"category":"OUT"}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS2.000035","source":"V2","standard_id":"IFRS2","concept_ids":["IFRS2.MEASUREMENT.FAIR_VALUE_ESTIMATION"],"dimension":"PROFESSIONAL_JUDGMENT","format":"ERROR_SPOT","context":"FINANCE","tested_point":"FAIR_VALUE_ERROR_SPOT","difficulty":"ADVANCED","estimated_time_s":100,"lesson_id":"LS.IFRS2.000004","review":{"standard_id":"IFRS2","lesson_id":"LS.IFRS2.000004","section_id":"judgment-inputs"},"references":["IFRS 2 §47"],"exercise":{"prompt":{"fr":"","en":"Spot the erroneous statements about estimating the fair value of an option granted.","es":""},"explanation":{"fr":"","en":"The statement on the justified assumptions of an option model and the one on an observed market price that can stand in for a model are correct (IFRS 2). The statement that has the standard set the volatility (it is a matter for the entity's judgement) and the one that reduces the value of an option to the price of the underlying are wrong.","es":""},"common_error":{"fr":"","en":"Equating the value of an option with the share price or a regulatory volatility.","es":""},"format":"ERROR_SPOT","statements":[{"id":"s1","text":{"fr":"","en":"The inputs of an option model reflect assumptions of the entity, which must be justified.","es":""},"erroneous":false},{"id":"s2","text":{"fr":"","en":"The standard sets the expected volatility from which any entity must calculate the fair value of its options.","es":""},"erroneous":true,"correction":{"fr":"","en":"The standard imposes no volatility: it is a matter of the entity's judgement and of case data.","es":""}},{"id":"s4","text":{"fr":"","en":"The price of the underlying share is enough to know the fair value of an option.","es":""},"erroneous":true,"correction":{"fr":"","en":"The value of an option also depends on the exercise price, the life, the volatility, the dividends and the rate.","es":""}},{"id":"s3","text":{"fr":"","en":"An observed market price for the option itself can stand in for a valuation model.","es":""},"erroneous":false}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS2.000036","source":"V2","standard_id":"IFRS2","concept_ids":["IFRS2.MEASUREMENT.FAIR_VALUE_ESTIMATION"],"dimension":"ANALYSIS","format":"SINGLE_CHOICE","context":"FINANCE","tested_point":"VOLATILITY_EFFECT_DIRECTION","difficulty":"ADVANCED","estimated_time_s":90,"lesson_id":"LS.IFRS2.000004","review":{"standard_id":"IFRS2","lesson_id":"LS.IFRS2.000004","section_id":"rule-model-inputs"},"references":["IFRS 2 §47"],"exercise":{"prompt":{"fr":"","en":"An entity revises its expected volatility upwards to value new options, all else equal. What is the usual effect on the fair value of a call option granted?","es":""},"explanation":{"fr":"","en":"For a call option, a higher expected volatility generally raises the fair value (option theory); options already granted are not remeasured (IFRS 2).","es":""},"common_error":{"fr":"","en":"Confusing the risk for the entity with the value of the option for its holder.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The fair value falls, because a less stable price is riskier for the entity","es":""},"correct":false,"feedback":{"fr":"","en":"The holder of a call option gains if the price rises a lot and loses little if it falls: a wider dispersion raises its value.","es":""}},{"id":"B","text":{"fr":"","en":"The fair value is unchanged, because volatility does not enter the calculation of the cost","es":""},"correct":false,"feedback":{"fr":"","en":"Volatility is a usual input of option models.","es":""}},{"id":"C","text":{"fr":"","en":"The fair value must be remeasured each year, because volatility changes","es":""},"correct":false,"feedback":{"fr":"","en":"An equity grant is not remeasured; the new volatility serves to value new options.","es":""}},{"id":"D","text":{"fr":"","en":"The fair value rises, because a wider possible dispersion of the price benefits the option holder","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS2.000037","source":"V2","standard_id":"IFRS2","concept_ids":["IFRS2.VESTING.CONDITION_TYPES"],"dimension":"RECOGNITION","format":"MATCHING","context":"AEROSPACE","tested_point":"CONDITION_TYPE_MATCH","difficulty":"BEGINNER","estimated_time_s":75,"lesson_id":"LS.IFRS2.000005","review":{"standard_id":"IFRS2","lesson_id":"LS.IFRS2.000005","section_id":"rule-conditions"},"references":["IFRS 2","IFRS 2 §19","IFRS 2 §21A"],"exercise":{"prompt":{"fr":"","en":"Match each plan clause with its type of condition.","es":""},"explanation":{"fr":"","en":"Staying in post is service; a price target is a market condition; a profit target is a non-market performance (IFRS 2).","es":""},"common_error":{"fr":"","en":"Placing a profit target among market conditions.","es":""},"format":"MATCHING","left":[{"id":"L1","text":{"fr":"","en":"Remain an employee for five years","es":""}},{"id":"L2","text":{"fr":"","en":"The share price exceeds €80 at maturity","es":""}},{"id":"L3","text":{"fr":"","en":"Operating profit grows by at least 6% a year","es":""}}],"right":[{"id":"R1","text":{"fr":"","en":"Service condition","es":""}},{"id":"R2","text":{"fr":"","en":"Market performance condition","es":""}},{"id":"R3","text":{"fr":"","en":"Non-market performance condition","es":""}},{"id":"R4","text":{"fr":"","en":"Non-vesting condition","es":""}}],"pairs":[{"left":"L1","right":"R1"},{"left":"L2","right":"R2"},{"left":"L3","right":"R3"}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS2.000038","source":"V2","standard_id":"IFRS2","concept_ids":["IFRS2.VESTING.CONDITION_TYPES"],"dimension":"APPLICATION","format":"CLASSIFICATION","context":"RETAIL","tested_point":"CONDITION_WHERE_REFLECTED","difficulty":"INTERMEDIATE","estimated_time_s":90,"lesson_id":"LS.IFRS2.000005","review":{"standard_id":"IFRS2","lesson_id":"LS.IFRS2.000005","section_id":"rule-conditions"},"references":["IFRS 2","IFRS 2 §19","IFRS 2 §21A"],"exercise":{"prompt":{"fr":"","en":"Sort each clause according to where it is reflected in the accounting for the plan.","es":""},"explanation":{"fr":"","en":"Service and non-market performance affect the number of instruments; market performance and non-vesting conditions affect the fair value (IFRS 2).","es":""},"common_error":{"fr":"","en":"Mixing up the two treatment families.","es":""},"format":"CLASSIFICATION","categories":[{"id":"NUM","text":{"fr":"","en":"In the number of instruments expected","es":""}},{"id":"FV","text":{"fr":"","en":"In the grant-date fair value","es":""}}],"items":[{"id":"i1","text":{"fr":"","en":"Remaining with the company until the end of the period","es":""},"category":"NUM"},{"id":"i2","text":{"fr":"","en":"Reaching a target revenue for the year","es":""},"category":"NUM"},{"id":"i3","text":{"fr":"","en":"Share price above a target at maturity","es":""},"category":"FV"},{"id":"i4","text":{"fr":"","en":"Obligation to keep saving every month during the period","es":""},"category":"FV"}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS2.000039","source":"V2","standard_id":"IFRS2","concept_ids":["IFRS2.VESTING.CONDITION_TYPES"],"dimension":"ANALYSIS","format":"MULTIPLE_CHOICE","context":"ENERGY","tested_point":"MARKET_VS_NON_MARKET_MC","difficulty":"INTERMEDIATE","estimated_time_s":80,"lesson_id":"LS.IFRS2.000005","review":{"standard_id":"IFRS2","lesson_id":"LS.IFRS2.000005","section_id":"judgment"},"references":["IFRS 2","IFRS 2 §19","IFRS 2 §21A"],"exercise":{"prompt":{"fr":"","en":"Which clauses are vesting conditions (and not non-vesting conditions)? (several answers)","es":""},"explanation":{"fr":"","en":"Service and performance (market or non-market) decide vesting; a contribution the beneficiary can stop and the exercise term are not vesting conditions (IFRS 2).","es":""},"common_error":{"fr":"","en":"Confusing a savings or similar obligation with a vesting condition.","es":""},"format":"MULTIPLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Reach a target operating profit at the end of the third year","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"Keep paying a monthly contribution to a company savings plan","es":""},"correct":false,"feedback":{"fr":"","en":"The beneficiary can stop contributing: it is a non-vesting condition, reflected in the fair value.","es":""}},{"id":"C","text":{"fr":"","en":"Hold options exercisable for ten years after vesting","es":""},"correct":false,"feedback":{"fr":"","en":"The exercise term sets the option's life; it does not decide vesting.","es":""}},{"id":"D","text":{"fr":"","en":"Remain an employee until the end of the plan","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS2.000040","source":"V2","standard_id":"IFRS2","concept_ids":["IFRS2.VESTING.CONDITION_TYPES","IFRS2.VESTING.MARKET_AND_NON_VESTING_NO_TRUE_UP"],"dimension":"PROFESSIONAL_JUDGMENT","format":"MINI_CASE","context":"AEROSPACE","tested_point":"THREE_CONDITIONS_MINI_CASE","difficulty":"ADVANCED","estimated_time_s":240,"lesson_id":"LS.IFRS2.000005","review":{"standard_id":"IFRS2","lesson_id":"LS.IFRS2.000005","section_id":"judgment"},"references":["IFRS 2","IFRS 2 §19","IFRS 2 §21A","IFRS 2 §21"],"exercise":{"prompt":{"fr":"","en":"Analyse the conditions of Aeralis SA's option plan.","es":""},"explanation":{"fr":"","en":"The plan combines service, market and non-market performance. Only service and non-market performance change the number of instruments vesting; the market condition is in the fair value and gives rise to no reversal (IFRS 2).","es":""},"common_error":{"fr":"","en":"Treating every condition as if it changed the number of instruments.","es":""},"format":"MINI_CASE","scenario":{"fr":"","en":"Aeralis SA grants its managers options that vest on three cumulative conditions (case data): (a) being an employee at the end of the three-year period; (b) a share price above a set target; (c) revenue for the last year above an objective. At the end of the period, the price target is missed, the revenue is reached and 90% of managers stayed.","es":""},"parts":[{"prompt":{"fr":"","en":"Classify each condition.","es":""},"explanation":{"fr":"","en":"Service, the price target and the activity objective correspond respectively to service, market and non-market performance conditions (IFRS 2).","es":""},"common_error":{"fr":"","en":"Classifying the revenue objective as a market condition.","es":""},"format":"CLASSIFICATION","categories":[{"id":"SERV","text":{"fr":"","en":"Service","es":""}},{"id":"MKT","text":{"fr":"","en":"Market performance","es":""}},{"id":"NONMKT","text":{"fr":"","en":"Non-market performance","es":""}}],"items":[{"id":"c1","text":{"fr":"","en":"Being an employee at the end of the three-year period","es":""},"category":"SERV"},{"id":"c2","text":{"fr":"","en":"Share price above a set target","es":""},"category":"MKT"},{"id":"c3","text":{"fr":"","en":"Revenue for the last year above an objective","es":""},"category":"NONMKT"}],"id":"p1","dimension":"RECOGNITION"},{"prompt":{"fr":"","en":"What happens to the cumulative expense in view of the missed price target?","es":""},"explanation":{"fr":"","en":"The expense is recognised for the instruments whose service and non-market performance conditions are met, whether or not the price target is reached (IFRS 2).","es":""},"common_error":{"fr":"","en":"Reversing the expense when the price target is missed.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"It is reversed in full, because the options do not vest","es":""},"correct":false,"feedback":{"fr":"","en":"Failure of a market condition gives rise to no reversal of expense.","es":""}},{"id":"B","text":{"fr":"","en":"It is halved, as a compromise between success and failure, without regard to the final price","es":""},"correct":false,"feedback":{"fr":"","en":"There is no compromise rule: the market condition is already in the fair value.","es":""}},{"id":"C","text":{"fr":"","en":"It is recalculated with the price observed at the end of the period","es":""},"correct":false,"feedback":{"fr":"","en":"The grant-date fair value is not remeasured.","es":""}},{"id":"D","text":{"fr":"","en":"It is maintained: the market condition is in the fair value, with no true-up","es":""},"correct":true}],"id":"p2","dimension":"ANALYSIS"},{"prompt":{"fr":"","en":"Why does the final expense relate to 90% of the options and not 100%?","es":""},"explanation":{"fr":"","en":"The service condition not met for the managers who left reduces the number of instruments vesting; the missed price target changes nothing (IFRS 2).","es":""},"common_error":{"fr":"","en":"Attributing the reduction to the outcome of the market condition.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Because the missed price target removes 10% of the options' value, since the value of the options is lower","es":""},"correct":false,"feedback":{"fr":"","en":"Failure of the market condition has no effect on the expense recognised.","es":""}},{"id":"B","text":{"fr":"","en":"Because the revenue objective was reached with a 10% delay, which reduces the year's expense","es":""},"correct":false,"feedback":{"fr":"","en":"The statement says the objective is reached; there is no delay.","es":""}},{"id":"C","text":{"fr":"","en":"Because 10% of managers left the company: the service condition is not met for them","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"Because the standard caps a plan's expense at 90% of its estimated cost","es":""},"correct":false,"feedback":{"fr":"","en":"No such cap exists; the 90% comes from the managers who stayed.","es":""}}],"id":"p3","dimension":"ANALYSIS"}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS2.000041","source":"V2","standard_id":"IFRS2","concept_ids":["IFRS2.VESTING.VESTING_PERIOD_ATTRIBUTION"],"dimension":"RULE_KNOWLEDGE","format":"SINGLE_CHOICE","context":"GENERIC","tested_point":"VESTING_PERIOD_DEFINITION","difficulty":"BEGINNER","estimated_time_s":45,"lesson_id":"LS.IFRS2.000005","review":{"standard_id":"IFRS2","lesson_id":"LS.IFRS2.000005","section_id":"rule-vesting-period"},"references":["IFRS 2 §15","IFRS 2"],"exercise":{"prompt":{"fr":"","en":"What is the vesting period of a plan?","es":""},"explanation":{"fr":"","en":"The vesting period runs from the grant date to the date all conditions are met and is used to spread the expense (IFRS 2, Appendix A).","es":""},"common_error":{"fr":"","en":"Confusing the vesting period with the exercise term.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The period during which beneficiaries can exercise their options after vesting, until they lapse","es":""},"correct":false,"feedback":{"fr":"","en":"That is the exercise term (contractual life), which starts after vesting.","es":""}},{"id":"B","text":{"fr":"","en":"The period during which all vesting conditions must be satisfied, starting from the grant date","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"The period between the announcement of the plan and its approval by the shareholders' meeting","es":""},"correct":false,"feedback":{"fr":"","en":"That period precedes the grant date; the vesting period starts at the grant date.","es":""}},{"id":"D","text":{"fr":"","en":"The annual accounting period in which the entity records its plan expense in its income statement for the year","es":""},"correct":false,"feedback":{"fr":"","en":"A financial year is a reporting period; the vesting period may cover several.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS2.000042","source":"V2","standard_id":"IFRS2","concept_ids":["IFRS2.VESTING.VESTING_PERIOD_ATTRIBUTION"],"dimension":"CALCULATION","format":"CALCULATION","context":"PHARMA","tested_point":"CUMULATIVE_EXPENSE_AT_DATE","difficulty":"INTERMEDIATE","estimated_time_s":120,"lesson_id":"LS.IFRS2.000005","review":{"standard_id":"IFRS2","lesson_id":"LS.IFRS2.000005","section_id":"numeric-period"},"references":["IFRS 2 §15","IFRS 2"],"exercise":{"prompt":{"fr":"","en":"Pharmalys SA grants options whose total cost at the grant date is €840,000. The vesting period is five years and 40% of the period has elapsed at the reporting date (case data). All beneficiaries are expected to stay. Calculate the cumulative expense at the reporting date and the part of the cost still to be recognised.","es":""},"explanation":{"fr":"","en":"€840,000 × 40% = €336,000; still to be recognised: €840,000 − €336,000 = €504,000 (IFRS 2, para. 15).","es":""},"common_error":{"fr":"","en":"Applying the elapsed share to the number of years instead of the total cost.","es":""},"format":"CALCULATION","data":[{"label":{"fr":"","en":"Total cost at the grant date","es":""},"value":"840000","unit":"EUR"},{"label":{"fr":"","en":"Elapsed share of the period","es":""},"value":"40","unit":"PERCENT"}],"steps":[{"id":"s1","label":{"fr":"","en":"Cumulative expense","es":""},"answer":336000,"tolerance":0,"unit":"EUR"},{"id":"s2","label":{"fr":"","en":"Cost still to be recognised","es":""},"answer":504000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"s1","meaning":{"fr":"","en":"Cumulative expense","es":""},"expression":"a * b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Total cost at the grant date","es":""},"value":840000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Elapsed share of the period","es":""},"value":40,"unit":"PERCENT"}],"result":336000,"unit":"EUR"},{"step":"s2","meaning":{"fr":"","en":"Cost still to be recognised","es":""},"expression":"a - b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Total cost at the grant date","es":""},"value":840000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Cumulative expense","es":""},"value":336000,"unit":"EUR"}],"result":504000,"unit":"EUR"}],"references":["REF.IFRS2.15"]}},"scope":"CORE_STUDENT"},{"key":"LX.IFRS2.000043","source":"V2","standard_id":"IFRS2","concept_ids":["IFRS2.VESTING.VESTING_PERIOD_ATTRIBUTION"],"dimension":"JOURNAL_ENTRY","format":"JOURNAL_ENTRY","context":"SOFTWARE","tested_point":"FIRST_YEAR_ENTRY","difficulty":"INTERMEDIATE","estimated_time_s":120,"lesson_id":"LS.IFRS2.000005","review":{"standard_id":"IFRS2","lesson_id":"LS.IFRS2.000005","section_id":"numeric-period"},"references":["IFRS 2 §15","IFRS 2"],"exercise":{"prompt":{"fr":"","en":"Cynapse SA granted an option plan on 1 January at a total cost of €280,000; the vesting period is four years and no leaver is expected. At the end of the first year, 25% of the period has elapsed. Post the entry for the first year's expense (accounts: case convention).","es":""},"explanation":{"fr":"","en":"€280,000 × 25% = €70,000: expense for the first year, against the share-based payment reserve (IFRS 2, para. 15).","es":""},"common_error":{"fr":"","en":"Recognising the whole cost in the first year.","es":""},"format":"JOURNAL_ENTRY","accounts":[{"id":"exp","text":{"fr":"","en":"Services expense (share-based payment)","es":""}},{"id":"res","text":{"fr":"","en":"Share-based payment reserve","es":""}},{"id":"liab","text":{"fr":"","en":"Share-based payment liability","es":""}}],"lines":[{"id":"l1","account":"exp","side":"DEBIT","amount":70000,"given":["account","side"]},{"id":"l2","account":"res","side":"CREDIT","amount":70000,"given":["account","side"]}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS2.000044","source":"V2","standard_id":"IFRS2","concept_ids":["IFRS2.VESTING.VESTING_PERIOD_ATTRIBUTION"],"dimension":"RULE_KNOWLEDGE","format":"TRUE_FALSE","context":"GENERIC","tested_point":"SPREAD_ON_LIFE_ERROR","difficulty":"BEGINNER","estimated_time_s":30,"lesson_id":"LS.IFRS2.000005","review":{"standard_id":"IFRS2","lesson_id":"LS.IFRS2.000005","section_id":"rule-vesting-period"},"references":["IFRS 2 §15","IFRS 2"],"exercise":{"prompt":{"fr":"","en":"The expense of an option plan vesting after two years of service is spread over the two-year vesting period, not over the options' contractual life, for example twelve years.","es":""},"explanation":{"fr":"","en":"The expense is spread over the vesting period (two years), during which the services are received (IFRS 2, Appendix A).","es":""},"common_error":{"fr":"","en":"Spreading over the contractual life instead of the vesting period.","es":""},"format":"TRUE_FALSE","answer":true},"scope":"CORE_STUDENT"},{"key":"LX.IFRS2.000045","source":"V2","standard_id":"IFRS2","concept_ids":["IFRS2.VESTING.MARKET_AND_NON_VESTING_NO_TRUE_UP"],"dimension":"RULE_KNOWLEDGE","format":"SINGLE_CHOICE","context":"TELECOM","tested_point":"MARKET_FAIL_NO_REVERSAL_SC","difficulty":"BEGINNER","estimated_time_s":45,"lesson_id":"LS.IFRS2.000005","review":{"standard_id":"IFRS2","lesson_id":"LS.IFRS2.000005","section_id":"rule-no-true-up"},"references":["IFRS 2 §21","IFRS 2 §21A"],"exercise":{"prompt":{"fr":"","en":"A plan is subject to three years of service and a price target. At maturity, employees have stayed but the target is missed. What does the entity do with the expense recognised?","es":""},"explanation":{"fr":"","en":"A market condition is reflected in the grant-date fair value: the expense is recognised for the employees who stayed, whether or not the target is reached (IFRS 2).","es":""},"common_error":{"fr":"","en":"Reversing the cumulative expense when the price target is not reached.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"It keeps it: the price target is already reflected in the grant-date fair value","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"It reverses it in full through profit or loss, since the options will not be exercised, keeping no balance","es":""},"correct":false,"feedback":{"fr":"","en":"Whether or not the options are exercised does not change the expense for a market condition.","es":""}},{"id":"C","text":{"fr":"","en":"It reverses it by the probability of failure estimated at the grant","es":""},"correct":false,"feedback":{"fr":"","en":"That probability is already in the fair value; reversing it would count the effect twice.","es":""}},{"id":"D","text":{"fr":"","en":"It transfers it to a liability until the end of the following year","es":""},"correct":false,"feedback":{"fr":"","en":"A plan settled in securities has no liability; the expense and the reserve both stay.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS2.000046","source":"V2","standard_id":"IFRS2","concept_ids":["IFRS2.VESTING.MARKET_AND_NON_VESTING_NO_TRUE_UP","IFRS2.VESTING.CONDITION_TYPES"],"dimension":"ANALYSIS","format":"SINGLE_CHOICE","context":"MINING","tested_point":"SERVICE_VS_MARKET_FAILURE","difficulty":"INTERMEDIATE","estimated_time_s":75,"lesson_id":"LS.IFRS2.000005","review":{"standard_id":"IFRS2","lesson_id":"LS.IFRS2.000005","section_id":"rule-no-true-up"},"references":["IFRS 2 §21","IFRS 2 §21A","IFRS 2","IFRS 2 §19"],"exercise":{"prompt":{"fr":"","en":"A manager leaves the company after two years out of three, before vesting. In the same plan, the price target is missed for his colleagues who stayed. Which treatment is correct?","es":""},"explanation":{"fr":"","en":"Failure of the service condition reduces the number of instruments expected (IFRS 2, para. 19); failure of the market condition gives rise to no reversal (IFRS 2).","es":""},"common_error":{"fr":"","en":"Not reversing the cumulative expense when the employee leaves before the end of the service.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Reverse the expense of the manager who left (service not rendered), keep the others'","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"Keep both expenses, because neither event is attributable to the entity","es":""},"correct":false,"feedback":{"fr":"","en":"The departure deprives the entity of the expected service: the number of instruments expected falls.","es":""}},{"id":"C","text":{"fr":"","en":"Reverse both expenses, because both events prevent vesting","es":""},"correct":false,"feedback":{"fr":"","en":"Failure of the price target gives rise to no reversal; only the departure does.","es":""}},{"id":"D","text":{"fr":"","en":"Keep the expense of the manager who left and reverse that of his colleagues who stayed","es":""},"correct":false,"feedback":{"fr":"","en":"This is the reverse of the rule: the departure calls for a reversal, the missed target does not.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS2.000047","source":"V2","standard_id":"IFRS2","concept_ids":["IFRS2.VESTING.MARKET_AND_NON_VESTING_NO_TRUE_UP"],"dimension":"CALCULATION","format":"CALCULATION","context":"AUTOMOTIVE","tested_point":"MARKET_FAIL_WITH_LEAVERS_CALC","difficulty":"INTERMEDIATE","estimated_time_s":150,"lesson_id":"LS.IFRS2.000005","review":{"standard_id":"IFRS2","lesson_id":"LS.IFRS2.000005","section_id":"numeric-market"},"references":["IFRS 2 §21","IFRS 2 §21A"],"exercise":{"prompt":{"fr":"","en":"Vexor SA grants its managers a plan whose total cost at the grant date, taking a price target into account, is €700,000 if all stay. At maturity, the price target is missed and 80% of managers have stayed (case data). The period has fully elapsed. Calculate the final cumulative expense and then the reduction due to leavers.","es":""},"explanation":{"fr":"","en":"€700,000 × 80% = €560,000; reduction: €700,000 − €560,000 = €140,000. The missed price target has no effect; only the service condition changes the amount (IFRS 2, para. 19).","es":""},"common_error":{"fr":"","en":"Applying an additional reduction for the missed price target.","es":""},"format":"CALCULATION","data":[{"label":{"fr":"","en":"Total cost if all stay","es":""},"value":"700000","unit":"EUR"},{"label":{"fr":"","en":"Managers who stayed","es":""},"value":"80","unit":"PERCENT"}],"steps":[{"id":"s1","label":{"fr":"","en":"Final cumulative expense","es":""},"answer":560000,"tolerance":0,"unit":"EUR"},{"id":"s2","label":{"fr":"","en":"Reduction due to leavers","es":""},"answer":140000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"s1","meaning":{"fr":"","en":"Final cumulative expense","es":""},"expression":"a * b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Total cost if all stay","es":""},"value":700000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Managers who stayed","es":""},"value":80,"unit":"PERCENT"}],"result":560000,"unit":"EUR"},{"step":"s2","meaning":{"fr":"","en":"Reduction due to leavers","es":""},"expression":"a - b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Total cost if all stay","es":""},"value":700000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Final cumulative expense","es":""},"value":560000,"unit":"EUR"}],"result":140000,"unit":"EUR"}],"references":["REF.IFRS2.21","REF.IFRS2.21A"]}},"scope":"CORE_STUDENT"},{"key":"LX.IFRS2.000048","source":"V2","standard_id":"IFRS2","concept_ids":["IFRS2.VESTING.MARKET_AND_NON_VESTING_NO_TRUE_UP","IFRS2.VESTING.CONDITION_TYPES"],"dimension":"ANALYSIS","format":"ERROR_SPOT","context":"GENERIC","tested_point":"NO_TRUE_UP_ERROR_SPOT","difficulty":"ADVANCED","estimated_time_s":100,"lesson_id":"LS.IFRS2.000005","review":{"standard_id":"IFRS2","lesson_id":"LS.IFRS2.000005","section_id":"rule-no-true-up"},"references":["IFRS 2 §21","IFRS 2 §21A","IFRS 2","IFRS 2 §19"],"exercise":{"prompt":{"fr":"","en":"Spot the erroneous statements about conditions and their effect on the expense.","es":""},"explanation":{"fr":"","en":"The statement on the market condition taken into account in the fair value and the one on an employee's departure reducing the number of instruments expected are correct (IFRS 2). The statement that classifies a profit target as a market condition (it is a non-market performance condition) and the one that reverses the expense when the price target is missed (failing a market condition gives rise to no reversal) are wrong.","es":""},"common_error":{"fr":"","en":"Treating an accounting objective as a price objective and reversing the expense on failure.","es":""},"format":"ERROR_SPOT","statements":[{"id":"s2","text":{"fr":"","en":"A net profit target is a market condition, because it is measured by a figure.","es":""},"erroneous":true,"correction":{"fr":"","en":"A profit target relates to the entity's activity: it is a non-market performance condition.","es":""}},{"id":"s3","text":{"fr":"","en":"An employee leaving before the end of the vesting period reduces the number of instruments expected.","es":""},"erroneous":false},{"id":"s4","text":{"fr":"","en":"The entity reverses the cumulative expense when the price target is not reached at maturity.","es":""},"erroneous":true,"correction":{"fr":"","en":"No reversal is made for failure of a market condition: it is in the fair value.","es":""}},{"id":"s1","text":{"fr":"","en":"A market condition is taken into account in the grant-date fair value.","es":""},"erroneous":false}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS2.000049","source":"V2","standard_id":"IFRS2","concept_ids":["IFRS2.VESTING.TRUE_UP_NON_MARKET"],"dimension":"RULE_KNOWLEDGE","format":"TRUE_FALSE","context":"GENERIC","tested_point":"TRUE_UP_PROSPECTIVE_ERROR","difficulty":"BEGINNER","estimated_time_s":30,"lesson_id":"LS.IFRS2.000006","review":{"standard_id":"IFRS2","lesson_id":"LS.IFRS2.000006","section_id":"rule-true-up"},"references":["IFRS 2 §19"],"exercise":{"prompt":{"fr":"","en":"When the entity revises the number of options expected, the correction is recognised in the period of the revision, not in the expenses of future years.","es":""},"explanation":{"fr":"","en":"The cumulative expense is recalculated and the difference is recognised in the period of the revision: it is a cumulative catch-up (IFRS 2, para. 19).","es":""},"common_error":{"fr":"","en":"Applying the revision to future periods only.","es":""},"format":"TRUE_FALSE","answer":true},"scope":"CORE_STUDENT"},{"key":"LX.IFRS2.000050","source":"V2","standard_id":"IFRS2","concept_ids":["IFRS2.VESTING.TRUE_UP_NON_MARKET"],"dimension":"RULE_KNOWLEDGE","format":"FILL_BLANK","context":"MEDIA","tested_point":"TRUE_UP_FILL_BLANK","difficulty":"BEGINNER","estimated_time_s":60,"lesson_id":"LS.IFRS2.000006","review":{"standard_id":"IFRS2","lesson_id":"LS.IFRS2.000006","section_id":"rule-true-up"},"references":["IFRS 2 §19"],"exercise":{"prompt":{"fr":"","en":"Complete the sentence.","es":""},"explanation":{"fr":"","en":"The number of instruments expected is revised; the grant-date fair value per option stays fixed (IFRS 2, para. 19).","es":""},"common_error":{"fr":"","en":"Revising the price and keeping the number.","es":""},"format":"FILL_BLANK","text":{"fr":"","en":"At each reporting date, the entity revises the {{quoi}} of options expected and keeps the grant-date {{fixe}} per option.","es":""},"blanks":[{"id":"quoi","mode":"CHOICE","choices":[{"id":"nb","text":{"fr":"","en":"number","es":""}},{"id":"px","text":{"fr":"","en":"exercise price","es":""}}],"answer":"nb"},{"id":"fixe","mode":"CHOICE","choices":[{"id":"fv","text":{"fr":"","en":"fair value","es":""}},{"id":"cours","text":{"fr":"","en":"closing price","es":""}}],"answer":"fv"}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS2.000051","source":"V2","standard_id":"IFRS2","concept_ids":["IFRS2.VESTING.TRUE_UP_NON_MARKET","IFRS2.VESTING.EXPENSE_CALCULATION"],"dimension":"CALCULATION","format":"CALCULATION","context":"TECH","tested_point":"PERIOD_EXPENSE_AFTER_REVISION_CALC","difficulty":"INTERMEDIATE","estimated_time_s":150,"lesson_id":"LS.IFRS2.000006","review":{"standard_id":"IFRS2","lesson_id":"LS.IFRS2.000006","section_id":"numeric-schedule"},"references":["IFRS 2 §19","IFRS 2 §15"],"exercise":{"prompt":{"fr":"","en":"Nodalys SA has a 5-year plan. At the end of the third year, the entity expects 22,000 options (fair value €9 each at the grant date), that is an expected total cost of €198,000; 60% of the period has elapsed (case data). The cumulative expense at the end of the second year was €48,000. Calculate the cumulative expense and the third year's expense.","es":""},"explanation":{"fr":"","en":"22,000 × €9 = €198,000 (given); €198,000 × 60% = €118,800; expense for the year: €118,800 − €48,000 = €70,800 (IFRS 2, para. 19).","es":""},"common_error":{"fr":"","en":"Forgetting to deduct the expense already recognised.","es":""},"format":"CALCULATION","data":[{"label":{"fr":"","en":"Expected total cost","es":""},"value":"198000","unit":"EUR"},{"label":{"fr":"","en":"Elapsed share","es":""},"value":"60","unit":"PERCENT"},{"label":{"fr":"","en":"Previous cumulative expense","es":""},"value":"48000","unit":"EUR"}],"steps":[{"id":"s1","label":{"fr":"","en":"Cumulative expense at the end of the third year","es":""},"answer":118800,"tolerance":0,"unit":"EUR"},{"id":"s2","label":{"fr":"","en":"Third year's expense","es":""},"answer":70800,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"s1","meaning":{"fr":"","en":"Cumulative expense at the end of the third year","es":""},"expression":"a * b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Expected total cost","es":""},"value":198000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Elapsed share","es":""},"value":60,"unit":"PERCENT"}],"result":118800,"unit":"EUR"},{"step":"s2","meaning":{"fr":"","en":"Third year's expense","es":""},"expression":"a - b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Cumulative expense at the end of the third year","es":""},"value":118800,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Previous cumulative expense","es":""},"value":48000,"unit":"EUR"}],"result":70800,"unit":"EUR"}],"references":["REF.IFRS2.19"]}},"scope":"CORE_STUDENT"},{"key":"LX.IFRS2.000052","source":"V2","standard_id":"IFRS2","concept_ids":["IFRS2.VESTING.EXPENSE_CALCULATION"],"dimension":"JOURNAL_ENTRY","format":"JOURNAL_ENTRY","context":"RETAIL","tested_point":"PERIOD_ENTRY_YEAR_TWO","difficulty":"INTERMEDIATE","estimated_time_s":120,"lesson_id":"LS.IFRS2.000006","review":{"standard_id":"IFRS2","lesson_id":"LS.IFRS2.000006","section_id":"entry-schedule"},"references":["IFRS 2 §19","IFRS 2 §15"],"exercise":{"prompt":{"fr":"","en":"Under an equity-settled plan, Retaillis SA has a cumulative expense of €175,000 at the end of year 1 and €262,000 at the end of year 2. Post the year 2 entry (accounts: case convention).","es":""},"explanation":{"fr":"","en":"Year 2 expense: €262,000 − €175,000 = €87,000, against the reserve (equity-settled plan) (IFRS 2, para. 19).","es":""},"common_error":{"fr":"","en":"Posting the cumulative expense of €262,000 instead of the expense for the year.","es":""},"format":"JOURNAL_ENTRY","accounts":[{"id":"exp","text":{"fr":"","en":"Services expense (share-based payment)","es":""}},{"id":"res","text":{"fr":"","en":"Share-based payment reserve","es":""}},{"id":"liab","text":{"fr":"","en":"Share-based payment liability","es":""}}],"lines":[{"id":"l1","account":"exp","side":"DEBIT","amount":87000,"given":["account","side"]},{"id":"l2","account":"res","side":"CREDIT","amount":87000,"given":["account","side"]}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS2.000053","source":"V2","standard_id":"IFRS2","concept_ids":["IFRS2.VESTING.EXPENSE_CALCULATION"],"dimension":"RULE_KNOWLEDGE","format":"SINGLE_CHOICE","context":"LOGISTICS","tested_point":"CUMULATIVE_NOT_PERIOD","difficulty":"INTERMEDIATE","estimated_time_s":60,"lesson_id":"LS.IFRS2.000006","review":{"standard_id":"IFRS2","lesson_id":"LS.IFRS2.000006","section_id":"how-schedule"},"references":["IFRS 2 §19","IFRS 2 §15"],"exercise":{"prompt":{"fr":"","en":"At the end of the second year of a plan, the cumulative expense calculated is €330,000; €142,000 had been recognised at the end of the first year. What is the second year's expense?","es":""},"explanation":{"fr":"","en":"Expense for the year = cumulative expense − expense already recognised: €330,000 − €142,000 = €188,000.","es":""},"common_error":{"fr":"","en":"Forgetting to deduct the expense already recognised to obtain the period expense.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"€330,000, the cumulative expense, because it already contains the services received, so no adjustment is needed","es":""},"correct":false,"feedback":{"fr":"","en":"The cumulative expense includes that of the first year, already recognised.","es":""}},{"id":"B","text":{"fr":"","en":"€472,000, the sum of the two amounts, to cumulate both years","es":""},"correct":false,"feedback":{"fr":"","en":"Adding the two amounts would count the first year twice.","es":""}},{"id":"C","text":{"fr":"","en":"€142,000, the same expense as in the first year, to keep a regular pace of recognition","es":""},"correct":false,"feedback":{"fr":"","en":"The expense for the year depends on the recalculated cumulative expense, not on an imposed pace.","es":""}},{"id":"D","text":{"fr":"","en":"€188,000, the difference between the cumulative expense and the expense already recognised","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS2.000054","source":"V2","standard_id":"IFRS2","concept_ids":["IFRS2.VESTING.TRUE_UP_NON_MARKET","IFRS2.VESTING.EXPENSE_CALCULATION"],"dimension":"CALCULATION","format":"CALCULATION","context":"BANKING","tested_point":"REVERSAL_CALC","difficulty":"ADVANCED","estimated_time_s":150,"lesson_id":"LS.IFRS2.000006","review":{"standard_id":"IFRS2","lesson_id":"LS.IFRS2.000006","section_id":"rule-reversal"},"references":["IFRS 2 §19","IFRS 2 §15"],"exercise":{"prompt":{"fr":"","en":"Fiduval SA has a 5-year plan. At the end of year 3, the cumulative expense recognised is €350,000. At the reporting date, the entity revises the number of options expected: the expected total cost falls to €410,000 and 60% of the period has elapsed (case data). Calculate the new cumulative expense and the expense for the year.","es":""},"explanation":{"fr":"","en":"€410,000 × 60% = €246,000; expense for the year: €246,000 − €350,000 = −€104,000, that is a reversal of €104,000 (IFRS 2, para. 19).","es":""},"common_error":{"fr":"","en":"Not reversing the expense when the revision brings the cumulative expense below the expense already recognised.","es":""},"format":"CALCULATION","data":[{"label":{"fr":"","en":"Revised expected total cost","es":""},"value":"410000","unit":"EUR"},{"label":{"fr":"","en":"Elapsed share","es":""},"value":"60","unit":"PERCENT"},{"label":{"fr":"","en":"Cumulative expense recognised","es":""},"value":"350000","unit":"EUR"}],"steps":[{"id":"s1","label":{"fr":"","en":"New cumulative expense","es":""},"answer":246000,"tolerance":0,"unit":"EUR"},{"id":"s2","label":{"fr":"","en":"Expense for the year (negative = reversal)","es":""},"answer":-104000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"s1","meaning":{"fr":"","en":"New cumulative expense","es":""},"expression":"a * b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Revised expected total cost","es":""},"value":410000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Elapsed share","es":""},"value":60,"unit":"PERCENT"}],"result":246000,"unit":"EUR"},{"step":"s2","meaning":{"fr":"","en":"Expense for the year (negative = reversal)","es":""},"expression":"a - b","variables":[{"symbol":"a","meaning":{"fr":"","en":"New cumulative expense","es":""},"value":246000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Cumulative expense recognised","es":""},"value":350000,"unit":"EUR"}],"result":-104000,"unit":"EUR"}],"references":["REF.IFRS2.19"]}},"scope":"CORE_STUDENT"},{"key":"LX.IFRS2.000055","source":"V2","standard_id":"IFRS2","concept_ids":["IFRS2.VESTING.TRUE_UP_NON_MARKET"],"dimension":"JOURNAL_ENTRY","format":"JOURNAL_ENTRY","context":"BANKING","tested_point":"REVERSAL_ENTRY","difficulty":"ADVANCED","estimated_time_s":120,"lesson_id":"LS.IFRS2.000006","review":{"standard_id":"IFRS2","lesson_id":"LS.IFRS2.000006","section_id":"rule-reversal"},"references":["IFRS 2 §19"],"exercise":{"prompt":{"fr":"","en":"Take the Fiduval SA case: the revision produces a reversal of €104,000 on an equity-settled plan. Post the entry for the reversal (accounts: case convention).","es":""},"explanation":{"fr":"","en":"The expense for the year is negative by €104,000: the reserve is debited and the services expense is credited, which reduces the reserve and improves profit (IFRS 2, para. 19).","es":""},"common_error":{"fr":"","en":"Reversing the direction of the entry or reversing against cash.","es":""},"format":"JOURNAL_ENTRY","accounts":[{"id":"exp","text":{"fr":"","en":"Services expense (share-based payment)","es":""}},{"id":"res","text":{"fr":"","en":"Share-based payment reserve","es":""}},{"id":"cash","text":{"fr":"","en":"Cash","es":""}}],"lines":[{"id":"l1","account":"res","side":"DEBIT","amount":104000,"given":["account","side"]},{"id":"l2","account":"exp","side":"CREDIT","amount":104000,"given":["account","side"]}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS2.000056","source":"V2","standard_id":"IFRS2","concept_ids":["IFRS2.VESTING.TRUE_UP_NON_MARKET"],"dimension":"ANALYSIS","format":"SINGLE_CHOICE","context":"HOSPITALITY","tested_point":"REVISION_EFFECT_ON_PROFIT","difficulty":"ADVANCED","estimated_time_s":90,"lesson_id":"LS.IFRS2.000006","review":{"standard_id":"IFRS2","lesson_id":"LS.IFRS2.000006","section_id":"judgment"},"references":["IFRS 2 §19"],"exercise":{"prompt":{"fr":"","en":"A hotel chain announces a restructuring that will make far more employee beneficiaries leave than expected. What is the effect on profit for the period of revising the number of options expected?","es":""},"explanation":{"fr":"","en":"Fewer options expected reduces the cumulative expense; the difference goes through profit in the period of the revision (cumulative catch-up) (IFRS 2, para. 19).","es":""},"common_error":{"fr":"","en":"Charging the revision to equity without going through profit.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"No effect on profit: the revision is charged to the equity reserve","es":""},"correct":false,"feedback":{"fr":"","en":"The adjustment goes through the services expense, hence through profit, with the reserve as the credit side.","es":""}},{"id":"B","text":{"fr":"","en":"The expense of future years falls, the profit for the period is unchanged","es":""},"correct":false,"feedback":{"fr":"","en":"The cumulative catch-up hits the period of the revision.","es":""}},{"id":"C","text":{"fr":"","en":"The cumulative expense falls and the difference is recognised in the period","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"Profit falls, because the loss of staff makes the remaining options cost more","es":""},"correct":false,"feedback":{"fr":"","en":"The fair value per option is fixed: leavers reduce the number, hence the cost.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS2.000057","source":"V2","standard_id":"IFRS2","concept_ids":["IFRS2.VESTING.TRUE_UP_NON_MARKET","IFRS2.VESTING.EXPENSE_CALCULATION"],"dimension":"CALCULATION","format":"MINI_CASE","context":"AUTOMOTIVE","tested_point":"FIVE_YEAR_PLAN_MINI_CASE","difficulty":"ADVANCED","estimated_time_s":300,"lesson_id":"LS.IFRS2.000006","review":{"standard_id":"IFRS2","lesson_id":"LS.IFRS2.000006","section_id":"numeric-schedule"},"references":["IFRS 2 §19","IFRS 2 §15"],"exercise":{"prompt":{"fr":"","en":"Calculate the expense of Garrad SA's plan for two years.","es":""},"explanation":{"fr":"","en":"The expected total costs of €216,000 and €202,500 follow from the expected numbers at €9 an option; the charge for N+1 is the difference between the cumulative expenses (IFRS 2, para. 19).","es":""},"common_error":{"fr":"","en":"Isolating each year without going through the cumulative expense.","es":""},"format":"MINI_CASE","scenario":{"fr":"","en":"Garrad SA grants its managers, on 1 January N, equity-settled options. Case data: five-year vesting period; grant-date fair value €9 per option; at the end of N, the entity expects 24,000 options, an expected total cost of €216,000; at the end of N+1, it expects 22,500 options, an expected total cost of €202,500; elapsed share: 20% at the end of N, 40% at the end of N+1.","es":""},"parts":[{"prompt":{"fr":"","en":"Calculate the cumulative expense and the expense of each year.","es":""},"explanation":{"fr":"","en":"€216,000 × 20% = €43,200; €202,500 × 40% = €81,000; expense for N+1: €81,000 − €43,200 = €37,800 (IFRS 2, para. 19).","es":""},"common_error":{"fr":"","en":"Applying the N+1 percentage to the cost of N.","es":""},"format":"CALCULATION","data":[{"label":{"fr":"","en":"Expected total cost end of N","es":""},"value":"216000","unit":"EUR"},{"label":{"fr":"","en":"Expected total cost end of N+1","es":""},"value":"202500","unit":"EUR"}],"steps":[{"id":"c1","label":{"fr":"","en":"Cumulative expense end of N","es":""},"answer":43200,"tolerance":0,"unit":"EUR"},{"id":"c2","label":{"fr":"","en":"Cumulative expense end of N+1","es":""},"answer":81000,"tolerance":0,"unit":"EUR"},{"id":"c3","label":{"fr":"","en":"Expense for year N+1","es":""},"answer":37800,"tolerance":0,"unit":"EUR"}],"id":"p1","dimension":"CALCULATION","formula":{"lines":[{"step":"c3","meaning":{"fr":"","en":"Expense for year N+1","es":""},"expression":"a - b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Cumulative expense end of N+1","es":""},"value":81000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Cumulative expense end of N","es":""},"value":43200,"unit":"EUR"}],"result":37800,"unit":"EUR"}],"references":["REF.IFRS2.19"]}},{"prompt":{"fr":"","en":"Post the entry for year N+1.","es":""},"explanation":{"fr":"","en":"The charge for N+1 is €37,800; the plan is equity-settled, so the credit side is the reserve.","es":""},"common_error":{"fr":"","en":"Crediting a liability for an equity-settled plan.","es":""},"format":"JOURNAL_ENTRY","accounts":[{"id":"exp","text":{"fr":"","en":"Services expense (share-based payment)","es":""}},{"id":"res","text":{"fr":"","en":"Share-based payment reserve","es":""}},{"id":"liab","text":{"fr":"","en":"Share-based payment liability","es":""}}],"lines":[{"id":"l1","account":"exp","side":"DEBIT","amount":37800,"given":["account","side"]},{"id":"l2","account":"res","side":"CREDIT","amount":37800,"given":["account","side"]}],"id":"p2","dimension":"JOURNAL_ENTRY"},{"prompt":{"fr":"","en":"The revision of the number of options expected between N and N+1 changes the fair value of €9 per option.","es":""},"explanation":{"fr":"","en":"Only the expected number is revised; the fair value per option stays that of the grant date (IFRS 2, para. 19).","es":""},"common_error":{"fr":"","en":"Recalculating the fair value at each reporting date.","es":""},"format":"TRUE_FALSE","answer":false,"id":"p3","dimension":"ANALYSIS"}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS2.000058","source":"V2","standard_id":"IFRS2","concept_ids":["IFRS2.VESTING.EXPENSE_CALCULATION","IFRS2.VESTING.TRUE_UP_NON_MARKET"],"dimension":"ANALYSIS","format":"ERROR_SPOT","context":"GENERIC","tested_point":"SCHEDULE_ERROR_SPOT","difficulty":"ADVANCED","estimated_time_s":100,"lesson_id":"LS.IFRS2.000006","review":{"standard_id":"IFRS2","lesson_id":"LS.IFRS2.000006","section_id":"how-schedule"},"references":["IFRS 2 §19","IFRS 2 §15"],"exercise":{"prompt":{"fr":"","en":"Spot the erroneous statements about calculating the expense of a multi-year plan.","es":""},"explanation":{"fr":"","en":"The statement on the expense of the period (recalculated cumulative expense less previous cumulative expense) and the one on the cumulative expense at the vesting date (number of instruments actually vesting) are correct (IFRS 2, para. 19). The statement that takes the number granted as the basis of the cost (it is the number expected) and the one that rules out a negative expense (a downward revision can produce a reversal) are wrong.","es":""},"common_error":{"fr":"","en":"Applying the number of instruments granted and ruling out any reversal.","es":""},"format":"ERROR_SPOT","statements":[{"id":"s3","text":{"fr":"","en":"At the vesting date, the cumulative expense corresponds to the number of instruments actually vested.","es":""},"erroneous":false},{"id":"s2","text":{"fr":"","en":"The number of instruments granted, and not the number expected at the reporting date, is the basis of the total cost.","es":""},"erroneous":true,"correction":{"fr":"","en":"The total cost rests on the number of instruments expected to vest at the reporting date.","es":""}},{"id":"s1","text":{"fr":"","en":"The expense for the year is the recalculated cumulative expense less the previous cumulative expense.","es":""},"erroneous":false},{"id":"s4","text":{"fr":"","en":"A negative expense for the year is impossible: an expense already recognised is not reversed.","es":""},"erroneous":true,"correction":{"fr":"","en":"A downward revision can bring the cumulative expense below the one already recognised: the expense for the year is then negative.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS2.000059","source":"V2","standard_id":"IFRS2","concept_ids":["IFRS2.VESTING.TRUE_UP_NON_MARKET"],"dimension":"APPLICATION","format":"SINGLE_CHOICE","context":"AEROSPACE","tested_point":"VESTING_DATE_ACTUAL_NUMBER","difficulty":"INTERMEDIATE","estimated_time_s":60,"lesson_id":"LS.IFRS2.000006","review":{"standard_id":"IFRS2","lesson_id":"LS.IFRS2.000006","section_id":"rule-true-up"},"references":["IFRS 2 §19"],"exercise":{"prompt":{"fr":"","en":"At the vesting date, 2,000 of the 2,400 options granted actually vest (the others lapsed because of leavers). On what number is the final cumulative expense based?","es":""},"explanation":{"fr":"","en":"At the vesting date, the cumulative amount corresponds to the number of instruments actually vested, at the grant-date fair value (IFRS 2, para. 19).","es":""},"common_error":{"fr":"","en":"Keeping the number granted or an estimate after the vesting date.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"On the 2,400 options granted, because the expense does not depend on leavers","es":""},"correct":false,"feedback":{"fr":"","en":"Options that lapsed because of leavers have not vested: they drop out of the number used.","es":""}},{"id":"B","text":{"fr":"","en":"On the 2,000 options actually vested, with the grant-date fair value","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"On 2,200 options, the management estimate at the previous closing, with no correction at vesting","es":""},"correct":false,"feedback":{"fr":"","en":"At the vesting date the uncertainty has gone: the actual number replaces the estimate.","es":""}},{"id":"D","text":{"fr":"","en":"On the 2,000 options vested, valued at the price on the vesting date, ignoring the leavers","es":""},"correct":false,"feedback":{"fr":"","en":"The number is right, but the value stays the grant-date fair value.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS2.000060","source":"V2","standard_id":"IFRS2","concept_ids":["IFRS2.MODIFICATION.BENEFICIAL"],"dimension":"RECOGNITION","format":"CLASSIFICATION","context":"MANUFACTURING","tested_point":"BENEFICIAL_CLASSIFY","difficulty":"INTERMEDIATE","estimated_time_s":90,"lesson_id":"LS.IFRS2.000007","review":{"standard_id":"IFRS2","lesson_id":"LS.IFRS2.000007","section_id":"rule-beneficial"},"references":["IFRS 2 §26","IFRS 2 §27"],"exercise":{"prompt":{"fr":"","en":"Sort each modification of a plan according to whether or not it is beneficial to the beneficiary.","es":""},"explanation":{"fr":"","en":"Shortening the vesting period or removing a performance condition other than a market condition benefits the beneficiary; lengthening that period or adding such a condition does not, and the entity then continues to account for the services as if the modification had not occurred (IFRS 2, para. 27).","es":""},"common_error":{"fr":"","en":"Judging the benefit by the board's intention rather than the effect on the instrument.","es":""},"format":"CLASSIFICATION","categories":[{"id":"BEN","text":{"fr":"","en":"Beneficial","es":""}},{"id":"NOT","text":{"fr":"","en":"Not beneficial","es":""}}],"items":[{"id":"i1","text":{"fr":"","en":"Reducing the vesting period from four to three years","es":""},"category":"BEN"},{"id":"i2","text":{"fr":"","en":"Removing the revenue target required for vesting","es":""},"category":"BEN"},{"id":"i3","text":{"fr":"","en":"Extending the vesting period from three to four years","es":""},"category":"NOT"},{"id":"i4","text":{"fr":"","en":"Adding an earnings-per-share growth condition for vesting","es":""},"category":"NOT"}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS2.000061","source":"V2","standard_id":"IFRS2","concept_ids":["IFRS2.MODIFICATION.BENEFICIAL"],"dimension":"CALCULATION","format":"CALCULATION","context":"CHEMICALS","tested_point":"INCREMENTAL_CHARGE_CALC","difficulty":"INTERMEDIATE","estimated_time_s":150,"lesson_id":"LS.IFRS2.000007","review":{"standard_id":"IFRS2","lesson_id":"LS.IFRS2.000007","section_id":"numeric-incremental"},"references":["IFRS 2 §26","IFRS 2 §27"],"exercise":{"prompt":{"fr":"","en":"Vexel SA modifies a plan at the end of year 3 of a 5-year plan (remaining period: 2 years). Incremental fair value per option at the modification date: €5 − €2; it concerns 16,000 options, a total incremental fair value of €48,000 (case data). At the end of year 4, the elapsed share of the remaining period is 50%. Calculate the incremental fair value per option and then the cumulative additional expense at the end of year 4.","es":""},"explanation":{"fr":"","en":"€5 − €2 = €3 per option (16,000 × €3 = €48,000, given); €48,000 × 50% = €24,000 of cumulative additional expense (IFRS 2, para. 27).","es":""},"common_error":{"fr":"","en":"Spreading the extra benefit over the whole original period.","es":""},"format":"CALCULATION","data":[{"label":{"fr":"","en":"Fair value of the modified option","es":""},"value":"5","unit":"EUR"},{"label":{"fr":"","en":"Fair value of the original option","es":""},"value":"2","unit":"EUR"},{"label":{"fr":"","en":"Total incremental fair value","es":""},"value":"48000","unit":"EUR"},{"label":{"fr":"","en":"Elapsed share of the remaining period","es":""},"value":"50","unit":"PERCENT"}],"steps":[{"id":"s1","label":{"fr":"","en":"Incremental fair value per option","es":""},"answer":3,"tolerance":0,"unit":"EUR"},{"id":"s2","label":{"fr":"","en":"Cumulative additional expense","es":""},"answer":24000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"s1","meaning":{"fr":"","en":"Incremental fair value per option","es":""},"expression":"a - b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Fair value of the modified option","es":""},"value":5,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Fair value of the original option","es":""},"value":2,"unit":"EUR"}],"result":3,"unit":"EUR"},{"step":"s2","meaning":{"fr":"","en":"Cumulative additional expense","es":""},"expression":"a * b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Total incremental fair value","es":""},"value":48000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Elapsed share of the remaining period","es":""},"value":50,"unit":"PERCENT"}],"result":24000,"unit":"EUR"}],"references":["REF.IFRS2.27"]}},"scope":"CORE_STUDENT"},{"key":"LX.IFRS2.000062","source":"V2","standard_id":"IFRS2","concept_ids":["IFRS2.MODIFICATION.BENEFICIAL"],"dimension":"CALCULATION","format":"CALCULATION","context":"CHEMICALS","tested_point":"ORIGINAL_PLUS_INCREMENTAL_YEAR","difficulty":"ADVANCED","estimated_time_s":180,"lesson_id":"LS.IFRS2.000007","review":{"standard_id":"IFRS2","lesson_id":"LS.IFRS2.000007","section_id":"numeric-incremental"},"references":["IFRS 2 §26","IFRS 2 §27"],"exercise":{"prompt":{"fr":"","en":"For Vexel SA's modified plan (5 years, modified at the end of year 3): original cost at the grant date of €360,000; cumulative expense at the end of year 3 of €216,000. At the end of year 4: original cost cumulated at 80% (elapsed share); total extra benefit of €48,000 of which 50% has elapsed. Calculate the total cumulative expense and the year 4 expense.","es":""},"explanation":{"fr":"","en":"€360,000 × 80% = €288,000; benefit: €48,000 × 50% = €24,000; cumulative expense: €288,000 + €24,000 = €312,000; year 4 expense: €312,000 − €216,000 = €96,000 (IFRS 2, para. 27).","es":""},"common_error":{"fr":"","en":"Applying the benefit share to the original cost or the reverse.","es":""},"format":"CALCULATION","data":[{"label":{"fr":"","en":"Original cost","es":""},"value":"360000","unit":"EUR"},{"label":{"fr":"","en":"Elapsed share of original cost end of year 4","es":""},"value":"80","unit":"PERCENT"},{"label":{"fr":"","en":"Total extra benefit","es":""},"value":"48000","unit":"EUR"},{"label":{"fr":"","en":"Elapsed share of the benefit","es":""},"value":"50","unit":"PERCENT"},{"label":{"fr":"","en":"Cumulative expense end of year 3","es":""},"value":"216000","unit":"EUR"}],"steps":[{"id":"s1","label":{"fr":"","en":"Cumulative original expense","es":""},"answer":288000,"tolerance":0,"unit":"EUR"},{"id":"s2","label":{"fr":"","en":"Total cumulative expense end of year 4","es":""},"answer":312000,"tolerance":0,"unit":"EUR"},{"id":"s3","label":{"fr":"","en":"Year 4 expense","es":""},"answer":96000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"s1","meaning":{"fr":"","en":"Cumulative original expense","es":""},"expression":"a * b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Original cost","es":""},"value":360000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Elapsed share of original cost end of year 4","es":""},"value":80,"unit":"PERCENT"}],"result":288000,"unit":"EUR"},{"step":"s2","meaning":{"fr":"","en":"Total cumulative expense end of year 4","es":""},"expression":"a + (b * c)","variables":[{"symbol":"a","meaning":{"fr":"","en":"Cumulative original expense","es":""},"value":288000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Total extra benefit","es":""},"value":48000,"unit":"EUR"},{"symbol":"c","meaning":{"fr":"","en":"Elapsed share of the benefit","es":""},"value":50,"unit":"PERCENT"}],"result":312000,"unit":"EUR"},{"step":"s3","meaning":{"fr":"","en":"Year 4 expense","es":""},"expression":"a - b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Total cumulative expense end of year 4","es":""},"value":312000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Cumulative expense end of year 3","es":""},"value":216000,"unit":"EUR"}],"result":96000,"unit":"EUR"}],"references":["REF.IFRS2.27"]}},"scope":"CORE_STUDENT"},{"key":"LX.IFRS2.000063","source":"V2","standard_id":"IFRS2","concept_ids":["IFRS2.MODIFICATION.BENEFICIAL"],"dimension":"JOURNAL_ENTRY","format":"JOURNAL_ENTRY","context":"CHEMICALS","tested_point":"INCREMENTAL_ENTRY","difficulty":"INTERMEDIATE","estimated_time_s":120,"lesson_id":"LS.IFRS2.000007","review":{"standard_id":"IFRS2","lesson_id":"LS.IFRS2.000007","section_id":"entry-incremental"},"references":["IFRS 2 §26","IFRS 2 §27"],"exercise":{"prompt":{"fr":"","en":"Take Vexel SA again: the year 4 expense is €96,000, of which €24,000 is extra benefit (equity-settled plan). Post the entry for the year 4 expense (accounts: case convention).","es":""},"explanation":{"fr":"","en":"Original expense and extra benefit have the same credit side in an equity-settled plan: a single entry of €96,000 credited to the reserve (IFRS 2, para. 27).","es":""},"common_error":{"fr":"","en":"Crediting a liability for the extra benefit of an equity-settled plan.","es":""},"format":"JOURNAL_ENTRY","accounts":[{"id":"exp","text":{"fr":"","en":"Services expense (share-based payment)","es":""}},{"id":"res","text":{"fr":"","en":"Share-based payment reserve","es":""}},{"id":"liab","text":{"fr":"","en":"Share-based payment liability","es":""}}],"lines":[{"id":"l1","account":"exp","side":"DEBIT","amount":96000,"given":["account","side"]},{"id":"l2","account":"res","side":"CREDIT","amount":96000,"given":["account","side"]}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS2.000064","source":"V2","standard_id":"IFRS2","concept_ids":["IFRS2.MODIFICATION.NON_BENEFICIAL"],"dimension":"RULE_KNOWLEDGE","format":"TRUE_FALSE","context":"RETAIL","tested_point":"NON_BENEFICIAL_NO_REDUCTION","difficulty":"BEGINNER","estimated_time_s":30,"lesson_id":"LS.IFRS2.000007","review":{"standard_id":"IFRS2","lesson_id":"LS.IFRS2.000007","section_id":"rule-non-beneficial"},"references":["IFRS 2 §26","IFRS 2 §27"],"exercise":{"prompt":{"fr":"","en":"If an entity raises the exercise price of options already granted, it does not reduce the original expense in proportion to the fall in value of the options.","es":""},"explanation":{"fr":"","en":"A non-beneficial modification does not reduce the expense: the original cost continues to be recognised (IFRS 2, para. 27).","es":""},"common_error":{"fr":"","en":"Reducing the expense because the terms become less favourable.","es":""},"format":"TRUE_FALSE","answer":true},"scope":"CORE_STUDENT"},{"key":"LX.IFRS2.000065","source":"V2","standard_id":"IFRS2","concept_ids":["IFRS2.MODIFICATION.NON_BENEFICIAL"],"dimension":"APPLICATION","format":"SINGLE_CHOICE","context":"ENERGY","tested_point":"NON_BENEFICIAL_EFFECT","difficulty":"INTERMEDIATE","estimated_time_s":75,"lesson_id":"LS.IFRS2.000007","review":{"standard_id":"IFRS2","lesson_id":"LS.IFRS2.000007","section_id":"rule-non-beneficial"},"references":["IFRS 2 §26","IFRS 2 §27"],"exercise":{"prompt":{"fr":"","en":"A plan has an original cost of €420,000 over 4 years. At the end of year 2, the entity adds an extra performance condition that makes vesting less likely. What is the effect on the year 3 expense?","es":""},"explanation":{"fr":"","en":"An extra condition is a non-beneficial modification: the original cost continues to be recognised as a minimum (IFRS 2, para. 27).","es":""},"common_error":{"fr":"","en":"Replacing the original cost with the value of the new terms.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The year 3 expense is reduced, since vesting has become less likely","es":""},"correct":false,"feedback":{"fr":"","en":"A non-beneficial modification does not reduce the original expense.","es":""}},{"id":"B","text":{"fr":"","en":"The original expense continues to be recognised over the vesting period, as if the modification had not taken place","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"The cumulative expense is reversed, because the plan has become a new plan","es":""},"correct":false,"feedback":{"fr":"","en":"The modification does not create a new plan that would wipe out the cost already committed.","es":""}},{"id":"D","text":{"fr":"","en":"The expense is recalculated with the fair value of the new terms at the modification date","es":""},"correct":false,"feedback":{"fr":"","en":"The original grant-date cost remains the basis; a lower value does not replace it.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS2.000066","source":"V2","standard_id":"IFRS2","concept_ids":["IFRS2.MODIFICATION.NON_BENEFICIAL","IFRS2.MODIFICATION.BENEFICIAL"],"dimension":"PROFESSIONAL_JUDGMENT","format":"MULTIPLE_CHOICE","context":"BIOTECH","tested_point":"MIXED_MODIFICATION_MC","difficulty":"ADVANCED","estimated_time_s":100,"lesson_id":"LS.IFRS2.000007","review":{"standard_id":"IFRS2","lesson_id":"LS.IFRS2.000007","section_id":"judgment"},"references":["IFRS 2 §26","IFRS 2 §27"],"exercise":{"prompt":{"fr":"","en":"A plan is modified: the exercise price is lowered and the service period is lengthened by one year. Which statements are correct? (several answers)","es":""},"explanation":{"fr":"","en":"A mixed modification is assessed on its net effect at the modification date; in all cases the original cost remains the minimum (IFRS 2, para. 27).","es":""},"common_error":{"fr":"","en":"Judging a mixed modification on only one of its elements.","es":""},"format":"MULTIPLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Whether it is beneficial is assessed by comparing the fair values of the modified and original instrument at the modification date","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"The original grant-date cost remains recognised as a minimum, whatever the conclusion","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"The modification is beneficial as soon as the exercise price falls, with no further review of the modified terms","es":""},"correct":false,"feedback":{"fr":"","en":"The longer service period may offset the lower price: the net effect must be assessed.","es":""}},{"id":"D","text":{"fr":"","en":"If the total fair value falls, the original expense is reduced by the same amount, from the modification date","es":""},"correct":false,"feedback":{"fr":"","en":"The original cost does not fall, even if the value of the new terms is lower.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS2.000067","source":"V2","standard_id":"IFRS2","concept_ids":["IFRS2.MODIFICATION.CANCELLATION_SETTLEMENT"],"dimension":"RECOGNITION","format":"MATCHING","context":"AUTOMOTIVE","tested_point":"CANCELLATION_TREATMENT_MATCH","difficulty":"BEGINNER","estimated_time_s":75,"lesson_id":"LS.IFRS2.000007","review":{"standard_id":"IFRS2","lesson_id":"LS.IFRS2.000007","section_id":"rule-cancellation"},"references":["IFRS 2 §28"],"exercise":{"prompt":{"fr":"","en":"Match each element of a cancellation with its treatment.","es":""},"explanation":{"fr":"","en":"The remaining cost is accelerated; the payment is a repurchase of equity up to fair value; the excess is an expense (IFRS 2).","es":""},"common_error":{"fr":"","en":"Carrying the remaining expense forward to later years.","es":""},"format":"MATCHING","left":[{"id":"L1","text":{"fr":"","en":"Cost remaining to be recognised on cancellation","es":""}},{"id":"L2","text":{"fr":"","en":"Payment up to the fair value of the instruments repurchased","es":""}},{"id":"L3","text":{"fr":"","en":"Payment beyond the fair value of the instruments repurchased","es":""}}],"right":[{"id":"R1","text":{"fr":"","en":"Immediate expense (acceleration)","es":""}},{"id":"R2","text":{"fr":"","en":"Deducted from equity (repurchase)","es":""}},{"id":"R3","text":{"fr":"","en":"Expense (excess)","es":""}},{"id":"R4","text":{"fr":"","en":"Carried forward to later years","es":""}}],"pairs":[{"left":"L1","right":"R1"},{"left":"L2","right":"R2"},{"left":"L3","right":"R3"}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS2.000068","source":"V2","standard_id":"IFRS2","concept_ids":["IFRS2.MODIFICATION.CANCELLATION_SETTLEMENT"],"dimension":"CALCULATION","format":"CALCULATION","context":"AEROSPACE","tested_point":"CANCELLATION_PAYMENT_EXCESS_CALC","difficulty":"INTERMEDIATE","estimated_time_s":150,"lesson_id":"LS.IFRS2.000007","review":{"standard_id":"IFRS2","lesson_id":"LS.IFRS2.000007","section_id":"numeric-cancellation"},"references":["IFRS 2 §28"],"exercise":{"prompt":{"fr":"","en":"Tavisse SA cancels a plan during vesting. Total cost at the grant: €520,000; expense already recognised: €180,000. It pays €413,000 to the beneficiaries; the fair value of the instruments repurchased is €360,000. Calculate the accelerated expense, the excess of the payment and the part charged to equity.","es":""},"explanation":{"fr":"","en":"€520,000 − €180,000 = €340,000; €413,000 − €360,000 = €53,000 of excess as an expense; €360,000 charged to equity (fair value of the instruments repurchased) (IFRS 2).","es":""},"common_error":{"fr":"","en":"Charging the whole cancellation payment to profit or loss instead of only the part exceeding fair value.","es":""},"format":"CALCULATION","data":[{"label":{"fr":"","en":"Total cost at the grant","es":""},"value":"520000","unit":"EUR"},{"label":{"fr":"","en":"Expense already recognised","es":""},"value":"180000","unit":"EUR"},{"label":{"fr":"","en":"Payment to beneficiaries","es":""},"value":"413000","unit":"EUR"},{"label":{"fr":"","en":"Fair value of the instruments repurchased","es":""},"value":"360000","unit":"EUR"}],"steps":[{"id":"s1","label":{"fr":"","en":"Accelerated expense","es":""},"answer":340000,"tolerance":0,"unit":"EUR"},{"id":"s2","label":{"fr":"","en":"Excess of the payment (expense)","es":""},"answer":53000,"tolerance":0,"unit":"EUR"},{"id":"s3","label":{"fr":"","en":"Charged to equity","es":""},"answer":360000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"s1","meaning":{"fr":"","en":"Accelerated expense","es":""},"expression":"a - b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Total cost at the grant","es":""},"value":520000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Expense already recognised","es":""},"value":180000,"unit":"EUR"}],"result":340000,"unit":"EUR"},{"step":"s2","meaning":{"fr":"","en":"Excess of the payment (expense)","es":""},"expression":"a - b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Payment to beneficiaries","es":""},"value":413000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Fair value of the instruments repurchased","es":""},"value":360000,"unit":"EUR"}],"result":53000,"unit":"EUR"}],"references":["REF.IFRS2.28"]}},"scope":"CORE_STUDENT"},{"key":"LX.IFRS2.000069","source":"V2","standard_id":"IFRS2","concept_ids":["IFRS2.MODIFICATION.CANCELLATION_SETTLEMENT"],"dimension":"JOURNAL_ENTRY","format":"JOURNAL_ENTRY","context":"AEROSPACE","tested_point":"CANCELLATION_PAYMENT_ENTRY","difficulty":"ADVANCED","estimated_time_s":150,"lesson_id":"LS.IFRS2.000007","review":{"standard_id":"IFRS2","lesson_id":"LS.IFRS2.000007","section_id":"numeric-cancellation"},"references":["IFRS 2 §28"],"exercise":{"prompt":{"fr":"","en":"Take Tavisse SA again: the payment of €413,000 to the beneficiaries, of which €360,000 matches the fair value of the instruments repurchased. Post the entry for the payment (accounts: case convention).","es":""},"explanation":{"fr":"","en":"Repurchase up to fair value: €360,000 debited to the reserve; excess: €413,000 − €360,000 = €53,000 debited to expense; cash is credited with €413,000 (IFRS 2).","es":""},"common_error":{"fr":"","en":"Debiting the whole payment to the reserve.","es":""},"format":"JOURNAL_ENTRY","accounts":[{"id":"exp","text":{"fr":"","en":"Services expense (share-based payment)","es":""}},{"id":"res","text":{"fr":"","en":"Share-based payment reserve","es":""}},{"id":"cash","text":{"fr":"","en":"Cash","es":""}}],"lines":[{"id":"l1","account":"res","side":"DEBIT","amount":360000,"given":["account","side"]},{"id":"l2","account":"exp","side":"DEBIT","amount":53000,"given":["account","side"]},{"id":"l3","account":"cash","side":"CREDIT","amount":413000,"given":["account","side"]}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS2.000070","source":"V2","standard_id":"IFRS2","concept_ids":["IFRS2.MODIFICATION.CANCELLATION_SETTLEMENT"],"dimension":"ANALYSIS","format":"ERROR_SPOT","context":"GENERIC","tested_point":"CANCELLATION_ERROR_SPOT","difficulty":"ADVANCED","estimated_time_s":100,"lesson_id":"LS.IFRS2.000007","review":{"standard_id":"IFRS2","lesson_id":"LS.IFRS2.000007","section_id":"rule-cancellation"},"references":["IFRS 2 §28"],"exercise":{"prompt":{"fr":"","en":"Spot the erroneous statements about the cancellation of a plan during the vesting period.","es":""},"explanation":{"fr":"","en":"The statement on the acceleration of the cost of the remaining services and the one on the cancellation payment treated as a repurchase of equity are correct (IFRS 2). The statement that reverses through profit or loss the expense already recognised (past expenses are not reversed) and the one that charges the whole payment to profit or loss (only the excess over the fair value of the instruments repurchased is an expense) are wrong.","es":""},"common_error":{"fr":"","en":"Reversing the past expense and charging the whole payment to profit or loss.","es":""},"format":"ERROR_SPOT","statements":[{"id":"s4","text":{"fr":"","en":"The cancellation payment is charged in full to profit or loss, whatever the fair value of the instruments repurchased.","es":""},"erroneous":true,"correction":{"fr":"","en":"Only the excess over the fair value of the instruments repurchased is an expense; the rest is charged to equity.","es":""}},{"id":"s2","text":{"fr":"","en":"The entity reverses through profit the expense already recognised, since the beneficiaries will not reach the end of the plan.","es":""},"erroneous":true,"correction":{"fr":"","en":"The expenses already recognised stay; the remaining expense is accelerated.","es":""}},{"id":"s3","text":{"fr":"","en":"A payment made to the beneficiaries on cancellation is treated as a repurchase of equity.","es":""},"erroneous":false},{"id":"s1","text":{"fr":"","en":"The cost that would have been recognised for the remaining services is recognised immediately.","es":""},"erroneous":false}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS2.000071","source":"V2","standard_id":"IFRS2","concept_ids":["IFRS2.MODIFICATION.CANCELLATION_SETTLEMENT","IFRS2.MODIFICATION.BENEFICIAL"],"dimension":"ANALYSIS","format":"SINGLE_CHOICE","context":"TECH","tested_point":"REPLACEMENT_AWARD_SC","difficulty":"ADVANCED","estimated_time_s":90,"lesson_id":"LS.IFRS2.000007","review":{"standard_id":"IFRS2","lesson_id":"LS.IFRS2.000007","section_id":"rule-cancellation"},"references":["IFRS 2 §28","IFRS 2 §26","IFRS 2 §27"],"exercise":{"prompt":{"fr":"","en":"An entity cancels a plan and, on the same day, grants new options stating that they replace the cancelled options. How should these new options be treated?","es":""},"explanation":{"fr":"","en":"A replacement instrument is treated as a modification of the original grant: the incremental fair value is measured at the replacement date (IFRS 2, para. 28).","es":""},"common_error":{"fr":"","en":"Treating a replacement instrument as a grant unconnected with the cancellation.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"As a modification of the original grant","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"As a separate grant, unconnected with the cancellation","es":""},"correct":false,"feedback":{"fr":"","en":"An instrument designated as a replacement is treated with the cancellation, as a modification.","es":""}},{"id":"C","text":{"fr":"","en":"As a cash settlement of the original grant","es":""},"correct":false,"feedback":{"fr":"","en":"No cash goes out: new options are handed over.","es":""}},{"id":"D","text":{"fr":"","en":"As a repurchase of equity charged to profit or loss","es":""},"correct":false,"feedback":{"fr":"","en":"A repurchase presupposes a payment to the beneficiary; here the entity hands over instruments.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS2.000072","source":"V2","standard_id":"IFRS2","concept_ids":["IFRS2.MODIFICATION.CANCELLATION_SETTLEMENT"],"dimension":"RULE_KNOWLEDGE","format":"FILL_BLANK","context":"TELECOM","tested_point":"CANCELLATION_FILL_BLANK","difficulty":"BEGINNER","estimated_time_s":60,"lesson_id":"LS.IFRS2.000007","review":{"standard_id":"IFRS2","lesson_id":"LS.IFRS2.000007","section_id":"rule-cancellation"},"references":["IFRS 2 §28"],"exercise":{"prompt":{"fr":"","en":"Complete the sentence.","es":""},"explanation":{"fr":"","en":"The remaining expense is accelerated and the payment is a repurchase of an equity interest, with the excess over fair value as an expense (IFRS 2).","es":""},"common_error":{"fr":"","en":"Deferring the remaining expense and treating the payment as debt.","es":""},"format":"FILL_BLANK","text":{"fr":"","en":"On cancellation of a plan during vesting, the remaining expense is {{traitement}} and the payment made to the beneficiary is a repurchase of {{poste}}.","es":""},"blanks":[{"id":"traitement","mode":"CHOICE","choices":[{"id":"accel","text":{"fr":"","en":"recognised immediately","es":""}},{"id":"cancel","text":{"fr":"","en":"cancelled","es":""}},{"id":"defer","text":{"fr":"","en":"deferred","es":""}}],"answer":"accel"},{"id":"poste","mode":"CHOICE","choices":[{"id":"eq","text":{"fr":"","en":"equity","es":""}},{"id":"debt","text":{"fr":"","en":"debt","es":""}}],"answer":"eq"}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS2.000074","source":"V2","standard_id":"IFRS2","concept_ids":["IFRS2.CASH_SETTLED.LIABILITY_MEASUREMENT"],"dimension":"CALCULATION","format":"CALCULATION","context":"AIRLINES","tested_point":"SAR_LIABILITY_AT_DATE","difficulty":"INTERMEDIATE","estimated_time_s":150,"lesson_id":"LS.IFRS2.000008","review":{"standard_id":"IFRS2","lesson_id":"LS.IFRS2.000008","section_id":"numeric-sar"},"references":["IFRS 2 §30"],"exercise":{"prompt":{"fr":"","en":"Aerolys SA granted cash-settled share appreciation rights. At the end of the first year of a 4-year plan, the entity expects 13,000 rights with a fair value of €12 each, an amount of €156,000; 25% of the period has elapsed (case data). At the next reporting date, it expects 11,400 rights with a fair value of €15 each, €171,000, and 50% of the period has elapsed. Calculate the two closing liabilities and the second year's expense.","es":""},"explanation":{"fr":"","en":"13,000 × €12 = €156,000 and 11,400 × €15 = €171,000 (given); €156,000 × 25% = €39,000; €171,000 × 50% = €85,500; year 2 expense: €85,500 − €39,000 = €46,500 (IFRS 2, para. 30).","es":""},"common_error":{"fr":"","en":"Calculating the year 2 expense on the rise in the expected amount alone.","es":""},"format":"CALCULATION","data":[{"label":{"fr":"","en":"Amount expected end of year 1","es":""},"value":"156000","unit":"EUR"},{"label":{"fr":"","en":"Amount expected end of year 2","es":""},"value":"171000","unit":"EUR"}],"steps":[{"id":"s1","label":{"fr":"","en":"Liability end of year 1 (25%)","es":""},"answer":39000,"tolerance":0,"unit":"EUR"},{"id":"s2","label":{"fr":"","en":"Liability end of year 2 (50%)","es":""},"answer":85500,"tolerance":0,"unit":"EUR"},{"id":"s3","label":{"fr":"","en":"Year 2 expense","es":""},"answer":46500,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"s3","meaning":{"fr":"","en":"Year 2 expense","es":""},"expression":"a - b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Liability end of year 2 (50%)","es":""},"value":85500,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Liability end of year 1 (25%)","es":""},"value":39000,"unit":"EUR"}],"result":46500,"unit":"EUR"}],"references":["REF.IFRS2.30"]}},"scope":"CORE_STUDENT"},{"key":"LX.IFRS2.000075","source":"V2","standard_id":"IFRS2","concept_ids":["IFRS2.CASH_SETTLED.LIABILITY_MEASUREMENT"],"dimension":"JOURNAL_ENTRY","format":"JOURNAL_ENTRY","context":"HOSPITALITY","tested_point":"LIABILITY_INCREASE_ENTRY","difficulty":"INTERMEDIATE","estimated_time_s":120,"lesson_id":"LS.IFRS2.000008","review":{"standard_id":"IFRS2","lesson_id":"LS.IFRS2.000008","section_id":"entry-sar"},"references":["IFRS 2 §30"],"exercise":{"prompt":{"fr":"","en":"Sofitel Alba SA has a cash-settled share appreciation rights plan. The liability goes from €66,000 to €129,000 at the reporting date; no cash has been paid. Post the entry for the expense of the year (accounts: case convention).","es":""},"explanation":{"fr":"","en":"Expense: €129,000 − €66,000 = €63,000, credited to the liability and not to a reserve, since the plan is cash-settled (IFRS 2).","es":""},"common_error":{"fr":"","en":"Recording the whole closing liability instead of its change.","es":""},"format":"JOURNAL_ENTRY","accounts":[{"id":"exp","text":{"fr":"","en":"Services expense (share-based payment)","es":""}},{"id":"liab","text":{"fr":"","en":"Share-based payment liability","es":""}},{"id":"res","text":{"fr":"","en":"Share-based payment reserve","es":""}}],"lines":[{"id":"l1","account":"exp","side":"DEBIT","amount":63000,"given":["account","side"]},{"id":"l2","account":"liab","side":"CREDIT","amount":63000,"given":["account","side"]}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS2.000076","source":"V2","standard_id":"IFRS2","concept_ids":["IFRS2.CASH_SETTLED.LIABILITY_MEASUREMENT"],"dimension":"JOURNAL_ENTRY","format":"JOURNAL_ENTRY","context":"HOSPITALITY","tested_point":"LIABILITY_DECREASE_ENTRY","difficulty":"INTERMEDIATE","estimated_time_s":120,"lesson_id":"LS.IFRS2.000008","review":{"standard_id":"IFRS2","lesson_id":"LS.IFRS2.000008","section_id":"entry-sar"},"references":["IFRS 2 §30"],"exercise":{"prompt":{"fr":"","en":"At the next reporting date, the share price of Sofitel Alba SA has fallen and the liability of this cash plan goes from €129,000 to €97,000. Post the corresponding entry (accounts: case convention).","es":""},"explanation":{"fr":"","en":"Change: €129,000 − €97,000 = €32,000. The fall in the liability is recognised in profit or loss (income): debit the liability, credit the expense (IFRS 2, para. 30).","es":""},"common_error":{"fr":"","en":"Not recognising the fall because it is not realised.","es":""},"format":"JOURNAL_ENTRY","accounts":[{"id":"exp","text":{"fr":"","en":"Services expense (share-based payment)","es":""}},{"id":"liab","text":{"fr":"","en":"Share-based payment liability","es":""}},{"id":"res","text":{"fr":"","en":"Share-based payment reserve","es":""}}],"lines":[{"id":"l1","account":"liab","side":"DEBIT","amount":32000,"given":["account","side"]},{"id":"l2","account":"exp","side":"CREDIT","amount":32000,"given":["account","side"]}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS2.000077","source":"V2","standard_id":"IFRS2","concept_ids":["IFRS2.CASH_SETTLED.LIABILITY_MEASUREMENT"],"dimension":"JOURNAL_ENTRY","format":"JOURNAL_ENTRY","context":"RETAIL","tested_point":"SETTLEMENT_ENTRY","difficulty":"INTERMEDIATE","estimated_time_s":90,"lesson_id":"LS.IFRS2.000008","review":{"standard_id":"IFRS2","lesson_id":"LS.IFRS2.000008","section_id":"entry-sar"},"references":["IFRS 2 §30"],"exercise":{"prompt":{"fr":"","en":"The liability of a cash plan has been remeasured to €215,000 at the settlement date and the entity pays that amount to the beneficiaries. Post the settlement entry (accounts: case convention).","es":""},"explanation":{"fr":"","en":"Settlement extinguishes the liability, already remeasured at the settlement date: debit the liability by €215,000, credit cash, with no new expense (IFRS 2, para. 30).","es":""},"common_error":{"fr":"","en":"Recognising an expense at settlement in addition to the remeasurement.","es":""},"format":"JOURNAL_ENTRY","accounts":[{"id":"exp","text":{"fr":"","en":"Services expense (share-based payment)","es":""}},{"id":"liab","text":{"fr":"","en":"Share-based payment liability","es":""}},{"id":"cash","text":{"fr":"","en":"Cash","es":""}}],"lines":[{"id":"l1","account":"liab","side":"DEBIT","amount":215000,"given":["account","side"]},{"id":"l2","account":"cash","side":"CREDIT","amount":215000,"given":["account","side"]}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS2.000078","source":"V2","standard_id":"IFRS2","concept_ids":["IFRS2.CASH_SETTLED.LIABILITY_MEASUREMENT"],"dimension":"CALCULATION","format":"CALCULATION","context":"AIRLINES","tested_point":"LIABILITY_ROLL_FORWARD_YEAR","difficulty":"ADVANCED","estimated_time_s":150,"lesson_id":"LS.IFRS2.000008","review":{"standard_id":"IFRS2","lesson_id":"LS.IFRS2.000008","section_id":"entry-sar"},"references":["IFRS 2 §30"],"exercise":{"prompt":{"fr":"","en":"A cash plan has an opening liability of €260,000. During the year, beneficiaries exercise part of their rights and the entity pays €130,000. The closing liability, after remeasurement at the reporting date, is €275,000. Calculate the expense for the year.","es":""},"explanation":{"fr":"","en":"Opening + expense − cash paid = closing, so expense = €275,000 − €260,000 + €130,000 = €145,000 (IFRS 2, para. 30).","es":""},"common_error":{"fr":"","en":"Forgetting to add the cash paid to the change in the liability.","es":""},"format":"CALCULATION","data":[{"label":{"fr":"","en":"Opening liability","es":""},"value":"260000","unit":"EUR"},{"label":{"fr":"","en":"Cash paid","es":""},"value":"130000","unit":"EUR"},{"label":{"fr":"","en":"Closing liability","es":""},"value":"275000","unit":"EUR"}],"steps":[{"id":"s1","label":{"fr":"","en":"Expense for the year","es":""},"answer":145000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"s1","meaning":{"fr":"","en":"Expense for the year","es":""},"expression":"a - b + c","variables":[{"symbol":"a","meaning":{"fr":"","en":"Closing liability","es":""},"value":275000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Opening liability","es":""},"value":260000,"unit":"EUR"},{"symbol":"c","meaning":{"fr":"","en":"Cash paid","es":""},"value":130000,"unit":"EUR"}],"result":145000,"unit":"EUR"}],"rationale":{"fr":"","en":"Opening + expense − cash paid = closing, so expense = €275,000 − €260,000 + €130,000 = €145,000 (IFRS 2, para. 30).","es":""},"references":["REF.IFRS2.30"]}},"scope":"CORE_STUDENT"},{"key":"LX.IFRS2.000079","source":"V2","standard_id":"IFRS2","concept_ids":["IFRS2.CASH_SETTLED.LIABILITY_MEASUREMENT"],"dimension":"ANALYSIS","format":"MULTIPLE_CHOICE","context":"GENERIC","tested_point":"EQUITY_VS_CASH_DIFFERENCES_MC","difficulty":"INTERMEDIATE","estimated_time_s":80,"lesson_id":"LS.IFRS2.000008","review":{"standard_id":"IFRS2","lesson_id":"LS.IFRS2.000008","section_id":"understand"},"references":["IFRS 2 §30"],"exercise":{"prompt":{"fr":"","en":"What differences exist between an equity-settled plan and a cash-settled plan? (several answers)","es":""},"explanation":{"fr":"","en":"The two plans differ in the credit side (reserve or liability) and in remeasurement: only the cash liability is remeasured (IFRS 2, para. 30).","es":""},"common_error":{"fr":"","en":"Applying to an equity plan the remeasurement of a cash plan.","es":""},"format":"MULTIPLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The expense of a cash plan does not go through the entity's profit or loss","es":""},"correct":false,"feedback":{"fr":"","en":"The expense of a cash plan goes through profit or loss, as do its remeasurements.","es":""}},{"id":"B","text":{"fr":"","en":"The credit side of the expense is a reserve on one side, a liability on the other","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"The cash plan alone has its fair value remeasured at each reporting date","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"The equity plan is remeasured at each reporting date like the cash plan","es":""},"correct":false,"feedback":{"fr":"","en":"The equity plan keeps the grant-date fair value.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS2.000080","source":"V2","standard_id":"IFRS2","concept_ids":["IFRS2.CASH_SETTLED.LIABILITY_MEASUREMENT","IFRS2.AMENDMENTS.CASH_VESTING_CONDITIONS"],"dimension":"CALCULATION","format":"MINI_CASE","context":"LOGISTICS","tested_point":"SAR_THREE_YEAR_MINI_CASE","difficulty":"ADVANCED","estimated_time_s":300,"lesson_id":"LS.IFRS2.000008","review":{"standard_id":"IFRS2","lesson_id":"LS.IFRS2.000008","section_id":"numeric-sar"},"references":["IFRS 2 §30","IFRS 2"],"exercise":{"prompt":{"fr":"","en":"Follow the liability of Transvia SA's rights over two years.","es":""},"explanation":{"fr":"","en":"The liability follows the amount expected at each reporting date; the total recognised over the life of the plan equals the cash finally paid (IFRS 2, 2016 amendment).","es":""},"common_error":{"fr":"","en":"Calculating each expense without going through the previous closing liability.","es":""},"format":"MINI_CASE","scenario":{"fr":"","en":"Transvia SA granted its managers cash-settled share appreciation rights (case data). Vesting period: two years. At the end of year 1: 14,000 rights expected, fair value €7 each, that is €98,000; elapsed share 50%. At the end of year 2: 13,000 rights vested, fair value €11 each, that is €143,000; elapsed share 100%. The rights are settled in cash in year 3 at a fair value of €12 each, that is €156,000.","es":""},"parts":[{"prompt":{"fr":"","en":"Calculate the end of year 1 liability, the end of year 2 liability and the expense of each year.","es":""},"explanation":{"fr":"","en":"€98,000 × 50% = €49,000; €143,000 × 100% = €143,000; year 2 expense: €143,000 − €49,000 = €94,000 (IFRS 2, para. 30).","es":""},"common_error":{"fr":"","en":"Taking the end of year 2 liability as the year's expense.","es":""},"format":"CALCULATION","data":[{"label":{"fr":"","en":"Amount expected end of year 1","es":""},"value":"98000","unit":"EUR"},{"label":{"fr":"","en":"Amount end of year 2","es":""},"value":"143000","unit":"EUR"}],"steps":[{"id":"c1","label":{"fr":"","en":"Liability end of year 1","es":""},"answer":49000,"tolerance":0,"unit":"EUR"},{"id":"c2","label":{"fr":"","en":"Liability end of year 2","es":""},"answer":143000,"tolerance":0,"unit":"EUR"},{"id":"c3","label":{"fr":"","en":"Year 2 expense","es":""},"answer":94000,"tolerance":0,"unit":"EUR"}],"id":"p1","dimension":"CALCULATION","formula":{"lines":[{"step":"c3","meaning":{"fr":"","en":"Year 2 expense","es":""},"expression":"a - b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Amount end of year 2","es":""},"value":143000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Liability end of year 1","es":""},"value":49000,"unit":"EUR"}],"result":94000,"unit":"EUR"}],"references":["REF.IFRS2.30"]}},{"prompt":{"fr":"","en":"Calculate the remeasurement expense of year 3 and the cash paid.","es":""},"explanation":{"fr":"","en":"€156,000 − €143,000 = €13,000 of remeasurement before settlement; the cash paid is €156,000 (13,000 rights × €12) (IFRS 2, para. 30).","es":""},"common_error":{"fr":"","en":"Forgetting the year 3 remeasurement.","es":""},"format":"CALCULATION","data":[{"label":{"fr":"","en":"Liability end of year 2","es":""},"value":"143000","unit":"EUR"},{"label":{"fr":"","en":"Amount at settlement","es":""},"value":"156000","unit":"EUR"}],"steps":[{"id":"d1","label":{"fr":"","en":"Year 3 remeasurement expense","es":""},"answer":13000,"tolerance":0,"unit":"EUR"},{"id":"d2","label":{"fr":"","en":"Cash paid","es":""},"answer":156000,"tolerance":0,"unit":"EUR"}],"id":"p2","dimension":"CALCULATION","formula":{"lines":[{"step":"d1","meaning":{"fr":"","en":"Year 3 remeasurement expense","es":""},"expression":"a - b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Amount at settlement","es":""},"value":156000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Liability end of year 2","es":""},"value":143000,"unit":"EUR"}],"result":13000,"unit":"EUR"}],"references":["REF.IFRS2.30"]}},{"prompt":{"fr":"","en":"The sum of the expenses of the three years equals the cash paid of €156,000.","es":""},"explanation":{"fr":"","en":"€49,000 + €94,000 + €13,000 = €156,000: the total recognised equals the cash finally paid (IFRS 2, 2016 amendment).","es":""},"common_error":{"fr":"","en":"Believing the total recognised differs from the cash paid.","es":""},"format":"TRUE_FALSE","answer":true,"id":"p3","dimension":"ANALYSIS"}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS2.000081","source":"V2","standard_id":"IFRS2","concept_ids":["IFRS2.AMENDMENTS.CASH_VESTING_CONDITIONS"],"dimension":"RECOGNITION","format":"CLASSIFICATION","context":"FINANCE","tested_point":"CASH_CONDITIONS_WHERE","difficulty":"INTERMEDIATE","estimated_time_s":90,"lesson_id":"LS.IFRS2.000008","review":{"standard_id":"IFRS2","lesson_id":"LS.IFRS2.000008","section_id":"rule-conditions"},"references":["IFRS 2"],"exercise":{"prompt":{"fr":"","en":"For a plan of rights payable in cash, sort each condition according to where it is reflected.","es":""},"explanation":{"fr":"","en":"Market and non-vesting conditions enter the fair value of the liability; service and non-market performance adjust the number of rights expected (IFRS 2, 2016 amendment).","es":""},"common_error":{"fr":"","en":"Mixing up the two treatment families.","es":""},"format":"CLASSIFICATION","categories":[{"id":"FV","text":{"fr":"","en":"In the fair value of the liability","es":""}},{"id":"NUM","text":{"fr":"","en":"In the number of rights expected","es":""}}],"items":[{"id":"i1","text":{"fr":"","en":"Share price above a target at maturity","es":""},"category":"FV"},{"id":"i2","text":{"fr":"","en":"Obligation to keep saving every month during the period","es":""},"category":"FV"},{"id":"i3","text":{"fr":"","en":"Staying an employee for three years","es":""},"category":"NUM"},{"id":"i4","text":{"fr":"","en":"Reaching an operating profit target over the period","es":""},"category":"NUM"}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS2.000082","source":"V2","standard_id":"IFRS2","concept_ids":["IFRS2.AMENDMENTS.CASH_VESTING_CONDITIONS"],"dimension":"RULE_KNOWLEDGE","format":"TRUE_FALSE","context":"TELECOM","tested_point":"MARKET_CONDITION_NOT_IN_NUMBER_TF","difficulty":"BEGINNER","estimated_time_s":30,"lesson_id":"LS.IFRS2.000008","review":{"standard_id":"IFRS2","lesson_id":"LS.IFRS2.000008","section_id":"rule-conditions"},"references":["IFRS 2"],"exercise":{"prompt":{"fr":"","en":"In a plan of rights payable in cash, a missed price target reduces the number of rights expected to vest.","es":""},"explanation":{"fr":"","en":"The market condition is reflected in the fair value of the liability, not in the number of rights expected (IFRS 2, 2016 amendment).","es":""},"common_error":{"fr":"","en":"Treating a market condition as a service condition.","es":""},"format":"TRUE_FALSE","answer":false},"scope":"CORE_STUDENT"},{"key":"LX.IFRS2.000083","source":"V2","standard_id":"IFRS2","concept_ids":["IFRS2.AMENDMENTS.CASH_VESTING_CONDITIONS"],"dimension":"CALCULATION","format":"CALCULATION","context":"SOFTWARE","tested_point":"CASH_SERVICE_CONDITION_CALC","difficulty":"ADVANCED","estimated_time_s":150,"lesson_id":"LS.IFRS2.000008","review":{"standard_id":"IFRS2","lesson_id":"LS.IFRS2.000008","section_id":"rule-conditions"},"references":["IFRS 2"],"exercise":{"prompt":{"fr":"","en":"A cash-settled plan of rights is subject to five years of service and a price target (already included in the €6 fair value of the right). At the end of year 2, the entity expects 17,000 rights (service): expected amount €102,000; 40% of the period has elapsed (case data). The opening liability is €17,000. Calculate the closing liability and the expense of the period (no cash paid).","es":""},"explanation":{"fr":"","en":"17,000 × €6 = €102,000 (given); €102,000 × 40% = €40,800; expense: €40,800 − €17,000 = €23,800. The price target is in the €6 of the right; service acts on the number of 17,000 (IFRS 2, 2016 amendment).","es":""},"common_error":{"fr":"","en":"Reducing the amount again for the price target when it is already in the fair value.","es":""},"format":"CALCULATION","data":[{"label":{"fr":"","en":"Amount expected (17,000 rights × €6)","es":""},"value":"102000","unit":"EUR"},{"label":{"fr":"","en":"Elapsed share","es":""},"value":"40","unit":"PERCENT"},{"label":{"fr":"","en":"Opening liability","es":""},"value":"17000","unit":"EUR"}],"steps":[{"id":"s1","label":{"fr":"","en":"Closing liability","es":""},"answer":40800,"tolerance":0,"unit":"EUR"},{"id":"s2","label":{"fr":"","en":"Expense of the period","es":""},"answer":23800,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"s1","meaning":{"fr":"","en":"Closing liability","es":""},"expression":"a * b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Amount expected (17,000 rights × €6)","es":""},"value":102000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Elapsed share","es":""},"value":40,"unit":"PERCENT"}],"result":40800,"unit":"EUR"},{"step":"s2","meaning":{"fr":"","en":"Expense of the period","es":""},"expression":"a - b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Closing liability","es":""},"value":40800,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Opening liability","es":""},"value":17000,"unit":"EUR"}],"result":23800,"unit":"EUR"}],"references":["REF.IFRS2.AMD2016.CASHVESTING","REF.IFRS2.AMD2016.EFFECTIVE"]}},"scope":"CORE_STUDENT"},{"key":"LX.IFRS2.000084","source":"V2","standard_id":"IFRS2","concept_ids":["IFRS2.AMENDMENTS.CASH_VESTING_CONDITIONS","IFRS2.CASH_SETTLED.LIABILITY_MEASUREMENT"],"dimension":"ANALYSIS","format":"ERROR_SPOT","context":"GENERIC","tested_point":"CASH_PLAN_ERROR_SPOT","difficulty":"ADVANCED","estimated_time_s":100,"lesson_id":"LS.IFRS2.000008","review":{"standard_id":"IFRS2","lesson_id":"LS.IFRS2.000008","section_id":"rule-conditions"},"references":["IFRS 2","IFRS 2 §30"],"exercise":{"prompt":{"fr":"","en":"Spot the erroneous statements about measuring a cash-settled liability.","es":""},"explanation":{"fr":"","en":"The statement on the service condition adjusting the number of rights expected and the one on the total expenses equal to the cash finally paid are correct (IFRS 2, 2016 amendment). The statement that places the market condition in the number of rights (it is in the fair value of the liability) and the one that stops remeasurement at the end of the vesting period (it continues until settlement) are wrong (IFRS 2, para. 30).","es":""},"common_error":{"fr":"","en":"Placing the market condition in the number and stopping remeasurement before settlement.","es":""},"format":"ERROR_SPOT","statements":[{"id":"s1","text":{"fr":"","en":"A service condition adjusts the number of rights expected in the calculation of the liability.","es":""},"erroneous":false},{"id":"s3","text":{"fr":"","en":"The total of the expenses recognised over the life of the plan equals the cash finally paid.","es":""},"erroneous":false},{"id":"s2","text":{"fr":"","en":"A market condition is reflected in the number of rights expected and not in the fair value of the liability.","es":""},"erroneous":true,"correction":{"fr":"","en":"A market condition is reflected in the fair value of the liability.","es":""}},{"id":"s4","text":{"fr":"","en":"Remeasurement of the liability stops at the end of the vesting period, even if the rights are not yet settled.","es":""},"erroneous":true,"correction":{"fr":"","en":"Remeasurement continues until settlement.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS2.000085","source":"V2","standard_id":"IFRS2","concept_ids":["IFRS2.ALTERNATIVES.PRESENT_OBLIGATION_TEST"],"dimension":"RULE_KNOWLEDGE","format":"TRUE_FALSE","context":"GENERIC","tested_point":"ENTITY_CHOICE_NOT_AUTOMATIC_TF","difficulty":"BEGINNER","estimated_time_s":30,"lesson_id":"LS.IFRS2.000009","review":{"standard_id":"IFRS2","lesson_id":"LS.IFRS2.000009","section_id":"understand"},"references":["IFRS 2 §34","IFRS 2"],"exercise":{"prompt":{"fr":"","en":"A settlement alternative left to the entity leads to classifying the transaction as equity-settled without examining the facts.","es":""},"explanation":{"fr":"","en":"One must assess whether the entity has a present obligation to settle in cash; classification as equity-settled is not automatic (IFRS 2).","es":""},"common_error":{"fr":"","en":"Not looking at who owns the choice, nor whether there is an obligation to pay in cash.","es":""},"format":"TRUE_FALSE","answer":false},"scope":"CORE_STUDENT"},{"key":"LX.IFRS2.000086","source":"V2","standard_id":"IFRS2","concept_ids":["IFRS2.ALTERNATIVES.PRESENT_OBLIGATION_TEST","IFRS2.ALTERNATIVES.ENTITY_CHOICE"],"dimension":"PROFESSIONAL_JUDGMENT","format":"MULTIPLE_CHOICE","context":"ENERGY","tested_point":"PRESENT_OBLIGATION_INDICATORS_MC","difficulty":"ADVANCED","estimated_time_s":100,"lesson_id":"LS.IFRS2.000009","review":{"standard_id":"IFRS2","lesson_id":"LS.IFRS2.000009","section_id":"judgment"},"references":["IFRS 2 §34","IFRS 2","IFRS 2 §41"],"exercise":{"prompt":{"fr":"","en":"Which facts support the existence of a present obligation to pay in cash when the entity chooses the settlement method? (several answers)","es":""},"explanation":{"fr":"","en":"A past practice of cash settlement that was announced, or a constraint preventing the issue of securities, supports a present obligation (overall assessment of the facts) (IFRS 2).","es":""},"common_error":{"fr":"","en":"Basing the conclusion on the movement of the price or the plan's label alone.","es":""},"format":"MULTIPLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The share price has fallen since the plan was granted, which reduces the value of the shares to be handed over","es":""},"correct":false,"feedback":{"fr":"","en":"A fall in the price does not create an obligation to pay in cash.","es":""}},{"id":"B","text":{"fr":"","en":"The plan is presented to employees as a share plan in the entity's internal documentation","es":""},"correct":false,"feedback":{"fr":"","en":"Presentation as shares points towards settlement in securities; it does not by itself establish an obligation to pay in cash.","es":""}},{"id":"C","text":{"fr":"","en":"The entity settled its three previous plans in cash and announced it to employees","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"A statutory rule prevents the entity from issuing securities for employees","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS2.000087","source":"V2","standard_id":"IFRS2","concept_ids":["IFRS2.ALTERNATIVES.COUNTERPARTY_CHOICE_COMPOUND"],"dimension":"RECOGNITION","format":"MATCHING","context":"FINANCE","tested_point":"COMPOUND_COMPONENTS_MATCH","difficulty":"BEGINNER","estimated_time_s":75,"lesson_id":"LS.IFRS2.000009","review":{"standard_id":"IFRS2","lesson_id":"LS.IFRS2.000009","section_id":"rule-counterparty"},"references":["IFRS 2 §35"],"exercise":{"prompt":{"fr":"","en":"Match each right of the counterparty with the corresponding component of the grant.","es":""},"explanation":{"fr":"","en":"The right to cash corresponds to the liability component; the right to securities corresponds to the equity component (IFRS 2).","es":""},"common_error":{"fr":"","en":"Swapping the two components.","es":""},"format":"MATCHING","left":[{"id":"L1","text":{"fr":"","en":"The right to demand cash","es":""}},{"id":"L2","text":{"fr":"","en":"The right to demand equity instruments","es":""}}],"right":[{"id":"R1","text":{"fr":"","en":"Liability component","es":""}},{"id":"R2","text":{"fr":"","en":"Equity component","es":""}},{"id":"R3","text":{"fr":"","en":"Profit or loss component","es":""}}],"pairs":[{"left":"L1","right":"R1"},{"left":"L2","right":"R2"}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS2.000088","source":"V2","standard_id":"IFRS2","concept_ids":["IFRS2.ALTERNATIVES.COUNTERPARTY_CHOICE_COMPOUND"],"dimension":"CALCULATION","format":"CALCULATION","context":"FINANCE","tested_point":"COMPOUND_YEAR_ONE_CALC","difficulty":"ADVANCED","estimated_time_s":180,"lesson_id":"LS.IFRS2.000009","review":{"standard_id":"IFRS2","lesson_id":"LS.IFRS2.000009","section_id":"numeric-compound"},"references":["IFRS 2 §35"],"exercise":{"prompt":{"fr":"","en":"Cavell SA lets 25 managers choose 900 shares or the cash value of 700 shares (share: €14 at the grant; case data). For 25 managers, the share alternative is worth €315,000 and the cash alternative €245,000. Assumption: the share price, and therefore the fair value of the cash alternative, stays unchanged at the end of year 1. Case convention: liability component = cash alternative; equity component = excess of the share alternative. After one year out of four (elapsed share 25%), calculate the total equity component, then the expense of each component.","es":""},"explanation":{"fr":"","en":"€315,000 − €245,000 = €70,000 of equity component (case convention); €245,000 × 25% = €61,250; €70,000 × 25% = €17,500 (IFRS 2).","es":""},"common_error":{"fr":"","en":"Applying the elapsed share to the liability component only.","es":""},"format":"CALCULATION","data":[{"label":{"fr":"","en":"Share alternative (total)","es":""},"value":"315000","unit":"EUR"},{"label":{"fr":"","en":"Cash alternative (total)","es":""},"value":"245000","unit":"EUR"},{"label":{"fr":"","en":"Elapsed share","es":""},"value":"25","unit":"PERCENT"}],"steps":[{"id":"s1","label":{"fr":"","en":"Total equity component","es":""},"answer":70000,"tolerance":0,"unit":"EUR"},{"id":"s2","label":{"fr":"","en":"Expense of the liability component","es":""},"answer":61250,"tolerance":0,"unit":"EUR"},{"id":"s3","label":{"fr":"","en":"Expense of the equity component","es":""},"answer":17500,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"s1","meaning":{"fr":"","en":"Total equity component","es":""},"expression":"a - b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Share alternative (total)","es":""},"value":315000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Cash alternative (total)","es":""},"value":245000,"unit":"EUR"}],"result":70000,"unit":"EUR"},{"step":"s2","meaning":{"fr":"","en":"Expense of the liability component","es":""},"expression":"a * b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Cash alternative (total)","es":""},"value":245000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Elapsed share","es":""},"value":25,"unit":"PERCENT"}],"result":61250,"unit":"EUR"},{"step":"s3","meaning":{"fr":"","en":"Expense of the equity component","es":""},"expression":"a * b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Total equity component","es":""},"value":70000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Elapsed share","es":""},"value":25,"unit":"PERCENT"}],"result":17500,"unit":"EUR"}],"references":["REF.IFRS2.35"]}},"scope":"CORE_STUDENT"},{"key":"LX.IFRS2.000089","source":"V2","standard_id":"IFRS2","concept_ids":["IFRS2.ALTERNATIVES.COUNTERPARTY_CHOICE_COMPOUND"],"dimension":"JOURNAL_ENTRY","format":"JOURNAL_ENTRY","context":"FINANCE","tested_point":"COMPOUND_YEAR_ONE_ENTRY","difficulty":"ADVANCED","estimated_time_s":150,"lesson_id":"LS.IFRS2.000009","review":{"standard_id":"IFRS2","lesson_id":"LS.IFRS2.000009","section_id":"numeric-compound"},"references":["IFRS 2 §35"],"exercise":{"prompt":{"fr":"","en":"Take Cavell SA again (share price unchanged at the end of year 1, case data; the liability therefore has no remeasurement): first-year expense of €61,250 for the liability component and €17,500 for the equity component. Post the full entry (accounts: case convention).","es":""},"explanation":{"fr":"","en":"Total expense: €61,250 + €17,500 = €78,750 in debit; credit to the liability of €61,250 (liability component) and to the reserve of €17,500 (equity component) (IFRS 2).","es":""},"common_error":{"fr":"","en":"Crediting the whole expense to a single component.","es":""},"format":"JOURNAL_ENTRY","accounts":[{"id":"exp","text":{"fr":"","en":"Services expense (share-based payment)","es":""}},{"id":"liab","text":{"fr":"","en":"Share-based payment liability","es":""}},{"id":"res","text":{"fr":"","en":"Share-based payment reserve","es":""}},{"id":"cash","text":{"fr":"","en":"Cash","es":""}}],"lines":[{"id":"l1","account":"exp","side":"DEBIT","amount":78750,"given":["account","side"]},{"id":"l2","account":"liab","side":"CREDIT","amount":61250,"given":["account","side"]},{"id":"l3","account":"res","side":"CREDIT","amount":17500,"given":["account","side"]}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS2.000090","source":"V2","standard_id":"IFRS2","concept_ids":["IFRS2.ALTERNATIVES.COUNTERPARTY_CHOICE_COMPOUND"],"dimension":"ANALYSIS","format":"SINGLE_CHOICE","context":"TECH","tested_point":"COMPOUND_EQUAL_VALUES","difficulty":"ADVANCED","estimated_time_s":90,"lesson_id":"LS.IFRS2.000009","review":{"standard_id":"IFRS2","lesson_id":"LS.IFRS2.000009","section_id":"numeric-compound"},"references":["IFRS 2 §35"],"exercise":{"prompt":{"fr":"","en":"A plan lets the beneficiary choose between 650 shares and the cash value of those 650 shares. Both alternatives have the same fair value. What is the equity component worth under the case convention (liability component = cash alternative)?","es":""},"explanation":{"fr":"","en":"Equity component = value of the share alternative − value of the cash alternative = 0 when the values are equal (case convention).","es":""},"common_error":{"fr":"","en":"Allocating the entire fair value to the equity component.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The fair value of the cash alternative, which makes up the equity component","es":""},"correct":false,"feedback":{"fr":"","en":"The fair value of the cash alternative is the liability component, not the equity component.","es":""}},{"id":"B","text":{"fr":"","en":"The full fair value, because the plan is in shares","es":""},"correct":false,"feedback":{"fr":"","en":"If the beneficiary can demand cash of the same value, it is the liability component that carries this value.","es":""}},{"id":"C","text":{"fr":"","en":"Zero: the share alternative is worth nothing more than the cash alternative","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"It cannot be determined without a pricing model","es":""},"correct":false,"feedback":{"fr":"","en":"The difference between two alternatives of equal value is nil without a model.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS2.000091","source":"V2","standard_id":"IFRS2","concept_ids":["IFRS2.ALTERNATIVES.ENTITY_CHOICE"],"dimension":"APPLICATION","format":"SINGLE_CHOICE","context":"MINING","tested_point":"ENTITY_CHOICE_NO_OBLIGATION","difficulty":"INTERMEDIATE","estimated_time_s":60,"lesson_id":"LS.IFRS2.000009","review":{"standard_id":"IFRS2","lesson_id":"LS.IFRS2.000009","section_id":"rule-present-obligation"},"references":["IFRS 2 §41","IFRS 2"],"exercise":{"prompt":{"fr":"","en":"A plan lets the entity choose between handing over shares and paying in cash. No commitment, practice or announcement obliges the entity to pay in cash. What is the classification?","es":""},"explanation":{"fr":"","en":"With no present obligation to pay in cash, the transaction is accounted for as equity-settled (IFRS 2).","es":""},"common_error":{"fr":"","en":"Treating a mere ability to pay in cash as an obligation.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Cash-settled, because the entity could choose to pay in cash, with nothing recorded in equity","es":""},"correct":false,"feedback":{"fr":"","en":"A possibility does not create a liability: a present obligation is needed.","es":""}},{"id":"B","text":{"fr":"","en":"Compound instrument, as if the counterparty had the choice, with a debt component and an equity component","es":""},"correct":false,"feedback":{"fr":"","en":"Here the choice belongs to the entity, not the counterparty: the compound method does not apply.","es":""}},{"id":"C","text":{"fr":"","en":"Equity-settled, because the entity has no present obligation to pay in cash","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"Not classifiable before the entity has made its choice at maturity","es":""},"correct":false,"feedback":{"fr":"","en":"The classification is made from the grant onwards, from the present obligation.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS2.000092","source":"V2","standard_id":"IFRS2","concept_ids":["IFRS2.ALTERNATIVES.ENTITY_CHOICE"],"dimension":"JOURNAL_ENTRY","format":"JOURNAL_ENTRY","context":"MINING","tested_point":"ENTITY_CASH_SETTLEMENT_ENTRY","difficulty":"INTERMEDIATE","estimated_time_s":120,"lesson_id":"LS.IFRS2.000009","review":{"standard_id":"IFRS2","lesson_id":"LS.IFRS2.000009","section_id":"entry-entity-choice"},"references":["IFRS 2 §41","IFRS 2"],"exercise":{"prompt":{"fr":"","en":"Mineral Orsa SA classified as equity-settled a plan whose settlement method it chooses. At the settlement date, it chooses cash and pays €63,000, an amount equal to the fair value of the shares on that date; the reserve built up is €96,000. Post the settlement entry (accounts: case convention).","es":""},"explanation":{"fr":"","en":"The payment of €63,000 is a repurchase of equity: debit the reserve, credit cash, with no expense. The balance of the reserve (€96,000 − €63,000 = €33,000) stays in equity (IFRS 2).","es":""},"common_error":{"fr":"","en":"Debiting the services expense for the payment.","es":""},"format":"JOURNAL_ENTRY","accounts":[{"id":"exp","text":{"fr":"","en":"Services expense (share-based payment)","es":""}},{"id":"res","text":{"fr":"","en":"Share-based payment reserve","es":""}},{"id":"liab","text":{"fr":"","en":"Share-based payment liability","es":""}},{"id":"cash","text":{"fr":"","en":"Cash","es":""}}],"lines":[{"id":"l1","account":"res","side":"DEBIT","amount":63000,"given":["account","side"]},{"id":"l2","account":"cash","side":"CREDIT","amount":63000,"given":["account","side"]}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS2.000093","source":"V2","standard_id":"IFRS2","concept_ids":["IFRS2.ALTERNATIVES.PRESENT_OBLIGATION_TEST","IFRS2.ALTERNATIVES.COUNTERPARTY_CHOICE_COMPOUND","IFRS2.ALTERNATIVES.ENTITY_CHOICE"],"dimension":"ANALYSIS","format":"CLASSIFICATION","context":"GENERIC","tested_point":"WHO_CHOOSES_CLASSIFICATION","difficulty":"INTERMEDIATE","estimated_time_s":100,"lesson_id":"LS.IFRS2.000009","review":{"standard_id":"IFRS2","lesson_id":"LS.IFRS2.000009","section_id":"understand"},"references":["IFRS 2 §34","IFRS 2","IFRS 2 §35","IFRS 2 §41"],"exercise":{"prompt":{"fr":"","en":"Sort each plan according to the treatment it calls for.","es":""},"explanation":{"fr":"","en":"The counterparty's choice creates a compound instrument; the entity's choice depends on the present obligation: an announced cash-settlement policy gives a liability, the absence of an obligation gives settlement in securities (IFRS 2).","es":""},"common_error":{"fr":"","en":"Treating any choice of the entity as settlement in securities.","es":""},"format":"CLASSIFICATION","categories":[{"id":"CASH","text":{"fr":"","en":"Cash-settled","es":""}},{"id":"EQ","text":{"fr":"","en":"Equity-settled","es":""}},{"id":"COMP","text":{"fr":"","en":"Compound instrument","es":""}}],"items":[{"id":"i1","text":{"fr":"","en":"The beneficiary chooses between shares and cash at maturity","es":""},"category":"COMP"},{"id":"i2","text":{"fr":"","en":"The entity chooses and has paid in cash for ten years under an announced policy","es":""},"category":"CASH"},{"id":"i3","text":{"fr":"","en":"The entity chooses with no obligation to pay in cash","es":""},"category":"EQ"}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS2.000094","source":"V2","standard_id":"IFRS2","concept_ids":["IFRS2.ALTERNATIVES.ENTITY_CHOICE","IFRS2.ALTERNATIVES.COUNTERPARTY_CHOICE_COMPOUND"],"dimension":"ANALYSIS","format":"ERROR_SPOT","context":"GENERIC","tested_point":"ALTERNATIVES_ERROR_SPOT","difficulty":"ADVANCED","estimated_time_s":100,"lesson_id":"LS.IFRS2.000009","review":{"standard_id":"IFRS2","lesson_id":"LS.IFRS2.000009","section_id":"rule-present-obligation"},"references":["IFRS 2 §41","IFRS 2","IFRS 2 §35"],"exercise":{"prompt":{"fr":"","en":"Spot the erroneous statements about settlement alternatives.","es":""},"explanation":{"fr":"","en":"The statement on the compound instrument when the counterparty chooses and the one on the 2006 agenda decision, under which the plan is within IFRS 2 even if the amount settled does not track the share price, are correct (IFRS Interpretations Committee agenda decision of 2006). The statement that charges to expense the cash settlement of an equity-classified award (it is a repurchase of equity) and the one that dismisses past practice (it can give rise to a present obligation) are wrong (IFRS 2).","es":""},"common_error":{"fr":"","en":"Charging a repurchase of equity to profit or loss and ignoring past practice.","es":""},"format":"ERROR_SPOT","statements":[{"id":"s2","text":{"fr":"","en":"The cash settlement of a grant classified as equity-settled is an expense of profit or loss for the period.","es":""},"erroneous":true,"correction":{"fr":"","en":"It is a repurchase of equity, deducted from equity.","es":""}},{"id":"s3","text":{"fr":"","en":"Under the Committee's 2006 agenda decision, the plan is within IFRS 2 even if the amount settled does not vary with the share price.","es":""},"erroneous":false},{"id":"s4","text":{"fr":"","en":"A past practice of cash settlement is irrelevant to the assessment of the present obligation.","es":""},"erroneous":true,"correction":{"fr":"","en":"A past practice may give rise to a present obligation to settle in cash.","es":""}},{"id":"s1","text":{"fr":"","en":"When the counterparty chooses, the entity has issued a compound instrument.","es":""},"erroneous":false}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS2.000095","source":"V2","standard_id":"IFRS2","concept_ids":["IFRS2.ALTERNATIVES.PRESENT_OBLIGATION_TEST"],"dimension":"RULE_KNOWLEDGE","format":"FILL_BLANK","context":"GENERIC","tested_point":"SETTLEMENT_ALTERNATIVES_FILL_BLANK","difficulty":"BEGINNER","estimated_time_s":60,"lesson_id":"LS.IFRS2.000009","review":{"standard_id":"IFRS2","lesson_id":"LS.IFRS2.000009","section_id":"understand"},"references":["IFRS 2 §34","IFRS 2"],"exercise":{"prompt":{"fr":"","en":"Complete the sentence.","es":""},"explanation":{"fr":"","en":"The transaction is cash-settled to the extent the entity has incurred a liability to settle in cash (IFRS 2).","es":""},"common_error":{"fr":"","en":"Linking a settlement alternative to settlement in securities by default.","es":""},"format":"FILL_BLANK","text":{"fr":"","en":"With a settlement alternative, the transaction is {{mode}}-settled to the extent the entity has incurred a {{poste}} to settle in cash.","es":""},"blanks":[{"id":"mode","mode":"CHOICE","choices":[{"id":"cash","text":{"fr":"","en":"cash","es":""}},{"id":"eq","text":{"fr":"","en":"equity","es":""}}],"answer":"cash"},{"id":"poste","mode":"CHOICE","choices":[{"id":"liab","text":{"fr":"","en":"liability","es":""}},{"id":"asset","text":{"fr":"","en":"asset","es":""}}],"answer":"liab"}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS2.000096","source":"V2","standard_id":"IFRS2","concept_ids":["IFRS2.SCOPE.SETTLEMENT_CLASSIFICATION"],"dimension":"APPLICATION","format":"SINGLE_CHOICE","context":"INDUSTRIAL","tested_point":"GROUP_ENTITY_OWN_DELIVERY","difficulty":"INTERMEDIATE","estimated_time_s":60,"lesson_id":"LS.IFRS2.000010","review":{"standard_id":"IFRS2","lesson_id":"LS.IFRS2.000010","section_id":"understand"},"references":["IFRS 2 §2","IFRS 2 §30"],"exercise":{"prompt":{"fr":"","en":"A parent hands its own shares to its subsidiary's employees. To classify the award in the subsidiary's statements, which question must be asked first?","es":""},"explanation":{"fr":"","en":"The entity receiving the services assesses the nature of the award and its own rights and obligations (IFRS 2, para. 43A); it does not automatically take over the classification of the consolidated accounts, and the amount recognised may differ from the group's.","es":""},"common_error":{"fr":"","en":"Carrying the consolidated classification over to the subsidiary.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Which classification has the consolidated group adopted?","es":""},"correct":false,"feedback":{"fr":"","en":"The group's classification does not carry over: each entity assesses its own obligations.","es":""}},{"id":"B","text":{"fr":"","en":"What must the subsidiary itself deliver in return for the services?","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"What is the parent's interest in the subsidiary?","es":""},"correct":false,"feedback":{"fr":"","en":"The percentage held does not determine the settlement method of the award.","es":""}},{"id":"D","text":{"fr":"","en":"What is the parent's share price at the reporting date and at the grant date?","es":""},"correct":false,"feedback":{"fr":"","en":"The price influences the measurement of a cash liability, not the classification.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS2.000098","source":"V2","standard_id":"IFRS2","concept_ids":["IFRS2.GROUP.RECEIVING_ENTITY"],"dimension":"PROFESSIONAL_JUDGMENT","format":"SINGLE_CHOICE","context":"INDUSTRIAL","tested_point":"SUBSIDIARY_CASH_REIMBURSEMENT","difficulty":"ADVANCED","estimated_time_s":100,"lesson_id":"LS.IFRS2.000010","review":{"standard_id":"IFRS2","lesson_id":"LS.IFRS2.000010","section_id":"rule-parent-grant"},"references":["IFRS 2 §43A"],"exercise":{"prompt":{"fr":"","en":"The parent grants its options to its subsidiary's employees. A written agreement requires the subsidiary to reimburse the parent, at the time of exercise, a cash sum equal to the value of the securities handed over. How does the subsidiary classify the award in its separate statements (IFRS 2)?","es":""},"explanation":{"fr":"","en":"The subsidiary assesses its own obligations: required to reimburse the parent in cash, it classifies the award as cash-settled (IFRS 2).","es":""},"common_error":{"fr":"","en":"Relying on the securities handed over alone without examining the reimbursement agreement.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Cash-settled: the subsidiary has a cash debt to the parent","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"Equity-settled, because the securities handed over are the parent's","es":""},"correct":false,"feedback":{"fr":"","en":"The subsidiary has an obligation to pay out cash: its own position is that of a cash settlement.","es":""}},{"id":"C","text":{"fr":"","en":"Outside the scope of IFRS 2 in its statements, because it hands over no securities","es":""},"correct":false,"feedback":{"fr":"","en":"A liability based on the share price is within scope, even without handing over securities.","es":""}},{"id":"D","text":{"fr":"","en":"Equity-settled as long as the parent has not demanded reimbursement","es":""},"correct":false,"feedback":{"fr":"","en":"It is the existence of the obligation, not its enforcement, that determines the classification.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS2.000099","source":"V2","standard_id":"IFRS2","concept_ids":["IFRS2.GROUP.RECEIVING_ENTITY"],"dimension":"CALCULATION","format":"CALCULATION","context":"INDUSTRIAL","tested_point":"SUBSIDIARY_YEAR_ONE_CALC","difficulty":"INTERMEDIATE","estimated_time_s":120,"lesson_id":"LS.IFRS2.000010","review":{"standard_id":"IFRS2","lesson_id":"LS.IFRS2.000010","section_id":"numeric-group"},"references":["IFRS 2 §43A"],"exercise":{"prompt":{"fr":"","en":"A parent grants options to employees of its subsidiary whose total cost at the grant date is €276,000; 4-year vesting period, 25% elapsed at the end of year 1; the subsidiary has no obligation to settle (case data). Calculate the year 1 expense in the subsidiary's statements.","es":""},"explanation":{"fr":"","en":"€276,000 × 25% = €69,000: expense of the subsidiary, with a contribution to equity from the parent as the credit side (IFRS 2).","es":""},"common_error":{"fr":"","en":"Recognising no expense in the subsidiary because the shares are the parent's.","es":""},"format":"CALCULATION","data":[{"label":{"fr":"","en":"Total cost","es":""},"value":"276000","unit":"EUR"},{"label":{"fr":"","en":"Elapsed share","es":""},"value":"25","unit":"PERCENT"}],"steps":[{"id":"s1","label":{"fr":"","en":"Year 1 expense in the subsidiary","es":""},"answer":69000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"s1","meaning":{"fr":"","en":"Year 1 expense in the subsidiary","es":""},"expression":"a * b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Total cost","es":""},"value":276000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Elapsed share","es":""},"value":25,"unit":"PERCENT"}],"result":69000,"unit":"EUR"}],"rationale":{"fr":"","en":"€276,000 × 25% = €69,000: expense of the subsidiary, with a contribution to equity from the parent as the credit side (IFRS 2).","es":""},"references":["REF.IFRS2.43A"]}},"scope":"CORE_STUDENT"},{"key":"LX.IFRS2.000100","source":"V2","standard_id":"IFRS2","concept_ids":["IFRS2.GROUP.RECEIVING_ENTITY"],"dimension":"JOURNAL_ENTRY","format":"JOURNAL_ENTRY","context":"INDUSTRIAL","tested_point":"SUBSIDIARY_YEAR_ONE_ENTRY","difficulty":"INTERMEDIATE","estimated_time_s":120,"lesson_id":"LS.IFRS2.000010","review":{"standard_id":"IFRS2","lesson_id":"LS.IFRS2.000010","section_id":"numeric-group"},"references":["IFRS 2 §43A"],"exercise":{"prompt":{"fr":"","en":"Take the subsidiary of the previous exercise: year 1 expense of €69,000, with no obligation to settle. Post the entry in the subsidiary's statements (accounts: case convention).","es":""},"explanation":{"fr":"","en":"The subsidiary has no obligation to settle: the award is equity-settled in its statements, with the expense of €69,000 matched by a contribution to equity from the parent (IFRS 2).","es":""},"common_error":{"fr":"","en":"Crediting a debt to the parent although no reimbursement is due.","es":""},"format":"JOURNAL_ENTRY","accounts":[{"id":"exp","text":{"fr":"","en":"Services expense (share-based payment)","es":""}},{"id":"eq","text":{"fr":"","en":"Equity (contribution from the parent)","es":""}},{"id":"liab","text":{"fr":"","en":"Debt to the parent","es":""}},{"id":"cash","text":{"fr":"","en":"Cash","es":""}}],"lines":[{"id":"l1","account":"exp","side":"DEBIT","amount":69000,"given":["account","side"]},{"id":"l2","account":"eq","side":"CREDIT","amount":69000,"given":["account","side"]}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS2.000102","source":"V2","standard_id":"IFRS2","concept_ids":["IFRS2.GROUP.RECEIVING_ENTITY","IFRS2.GROUP.PARENT_GRANT_TO_SUBSIDIARY_EMPLOYEES"],"dimension":"ANALYSIS","format":"CLASSIFICATION","context":"INDUSTRIAL","tested_point":"GROUP_ENTITIES_TABLE_CLASSIFY","difficulty":"ADVANCED","estimated_time_s":100,"lesson_id":"LS.IFRS2.000010","review":{"standard_id":"IFRS2","lesson_id":"LS.IFRS2.000010","section_id":"rule-receiving-entity"},"references":["IFRS 2 §43A"],"exercise":{"prompt":{"fr":"","en":"Sort each finding according to the group entity to which it relates.","es":""},"explanation":{"fr":"","en":"The parent bears the obligation to deliver its shares and records its increased investment; the subsidiary receives the services, recognises the expense and assesses its own obligations (IFRS 2, para. 43A).","es":""},"common_error":{"fr":"","en":"Mixing up the roles of the parent and the subsidiary.","es":""},"format":"CLASSIFICATION","categories":[{"id":"PAR","text":{"fr":"","en":"Parent","es":""}},{"id":"SUB","text":{"fr":"","en":"Subsidiary (receives the services)","es":""}}],"items":[{"id":"i1","text":{"fr":"","en":"Must deliver its own equity instruments to the beneficiaries","es":""},"category":"PAR"},{"id":"i2","text":{"fr":"","en":"Recognises the expense for services received from its employees","es":""},"category":"SUB"},{"id":"i3","text":{"fr":"","en":"Assesses its own rights and obligations to classify the award in its statements","es":""},"category":"SUB"},{"id":"i4","text":{"fr":"","en":"Records the increase in its investment in the subsidiary (IFRS 2)","es":""},"category":"PAR"}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS2.000103","source":"V2","standard_id":"IFRS2","concept_ids":["IFRS2.GROUP.RECEIVING_ENTITY","IFRS2.GROUP.PARENT_GRANT_TO_SUBSIDIARY_EMPLOYEES","IFRS2.SCOPE.SETTLEMENT_CLASSIFICATION"],"dimension":"PROFESSIONAL_JUDGMENT","format":"MINI_CASE","context":"INDUSTRIAL","tested_point":"GROUP_FOUR_VIEWS_MINI_CASE","difficulty":"EXPERT","estimated_time_s":300,"lesson_id":"LS.IFRS2.000010","review":{"standard_id":"IFRS2","lesson_id":"LS.IFRS2.000010","section_id":"judgment"},"references":["IFRS 2 §43A","IFRS 2 §2","IFRS 2 §30"],"exercise":{"prompt":{"fr":"","en":"Analyse the award by Kaldor Holding SA to the employees of its subsidiary Meris SA.","es":""},"explanation":{"fr":"","en":"Each entity assesses its own obligations: Kaldor bears delivery of the shares, Meris, required to reimburse it in cash, classifies the award as cash-settled in its statements, and the entities' amounts may differ from the group's (IFRS 2).","es":""},"common_error":{"fr":"","en":"Reasoning only at the level of the consolidated group.","es":""},"format":"MINI_CASE","scenario":{"fr":"","en":"Kaldor Holding SA grants its shares to the employees of its subsidiary Meris SA, who work for Meris. Case data: a written agreement provides that Meris reimburses Kaldor, in cash, the value of the shares handed over at the vesting date; the total cost at the grant date is €450,000 over three years; Meris receives the services.","es":""},"parts":[{"prompt":{"fr":"","en":"Which entity has the obligation to deliver the shares to the employees?","es":""},"explanation":{"fr":"","en":"The parent granting its instruments directly has the obligation to deliver them (IFRS 2).","es":""},"common_error":{"fr":"","en":"Naming the employer as the party owing delivery.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Meris, because it employs the beneficiaries and bears their cost","es":""},"correct":false,"feedback":{"fr":"","en":"Employing the beneficiaries does not make Meris bear the obligation to deliver the parent's shares.","es":""}},{"id":"B","text":{"fr":"","en":"Both entities, each for the share of employees it employs","es":""},"correct":false,"feedback":{"fr":"","en":"The obligation to deliver belongs to the entity handing over its shares.","es":""}},{"id":"C","text":{"fr":"","en":"Neither one before the vesting date, for want of a full agreement","es":""},"correct":false,"feedback":{"fr":"","en":"The obligation exists from the grant, even if delivery is in the future.","es":""}},{"id":"D","text":{"fr":"","en":"Kaldor, the parent that grants them directly","es":""},"correct":true}],"id":"p1","dimension":"ANALYSIS"},{"prompt":{"fr":"","en":"How does Meris classify the award in its separate statements, given the written agreement (IFRS 2)?","es":""},"explanation":{"fr":"","en":"Meris assesses its own obligations: required to reimburse in cash, it classifies the award as cash-settled (IFRS 2).","es":""},"common_error":{"fr":"","en":"Carrying the group's classification into the subsidiary.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Equity-settled, because the shares are Kaldor's","es":""},"correct":false,"feedback":{"fr":"","en":"Meris has a cash obligation: its own position is that of a cash settlement.","es":""}},{"id":"B","text":{"fr":"","en":"Not recognised before actual reimbursement","es":""},"correct":false,"feedback":{"fr":"","en":"The services are received during the vesting period: the expense is recognised as they are rendered.","es":""}},{"id":"C","text":{"fr":"","en":"Outside the scope of IFRS 2 in Meris's statements","es":""},"correct":false,"feedback":{"fr":"","en":"Meris receives services against a liability linked to the share: it is a share-based payment transaction.","es":""}},{"id":"D","text":{"fr":"","en":"Cash-settled: Meris must reimburse Kaldor in cash","es":""},"correct":true}],"id":"p2","dimension":"PROFESSIONAL_JUDGMENT"},{"prompt":{"fr":"","en":"The amount recognised by Meris may differ from that of the Kaldor consolidated group.","es":""},"explanation":{"fr":"","en":"An entity's amount may differ from that of the consolidated group or of another group entity that settles the transaction (IFRS 2, para. 43A).","es":""},"common_error":{"fr":"","en":"Believing the amount is identical in every entity.","es":""},"format":"TRUE_FALSE","answer":true,"id":"p3","dimension":"ANALYSIS"}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS2.000104","source":"V2","standard_id":"IFRS2","concept_ids":["IFRS2.GROUP.PARENT_GRANT_TO_SUBSIDIARY_EMPLOYEES"],"dimension":"ANALYSIS","format":"ERROR_SPOT","context":"INDUSTRIAL","tested_point":"GROUP_ERROR_SPOT","difficulty":"ADVANCED","estimated_time_s":100,"lesson_id":"LS.IFRS2.000010","review":{"standard_id":"IFRS2","lesson_id":"LS.IFRS2.000010","section_id":"rule-parent-grant"},"references":["IFRS 2 §43A"],"exercise":{"prompt":{"fr":"","en":"Spot the erroneous statements about group awards.","es":""},"explanation":{"fr":"","en":"The statement on the obligation of the parent that grants its shares directly to deliver them and the one on a subsidiary's amount, which may differ from that of the consolidated group, are correct (IFRS 2). The statement that imposes the consolidated group's classification (the entity receiving the services assesses its own rights and obligations) and the one that denies the effect of a cash reimbursement agreement (it can create an obligation and change the classification in the subsidiary) are wrong.","es":""},"common_error":{"fr":"","en":"Imposing the group's classification on each entity and ignoring the intragroup agreement.","es":""},"format":"ERROR_SPOT","statements":[{"id":"s2","text":{"fr":"","en":"The entity receiving the services must adopt the classification of the consolidated group.","es":""},"erroneous":true,"correction":{"fr":"","en":"It assesses the nature of the award and its own rights and obligations.","es":""}},{"id":"s1","text":{"fr":"","en":"The parent that grants its shares directly to a subsidiary's employees has the obligation to deliver them.","es":""},"erroneous":false},{"id":"s3","text":{"fr":"","en":"The amount recognised in a subsidiary may differ from that of the consolidated group.","es":""},"erroneous":false},{"id":"s4","text":{"fr":"","en":"A written cash reimbursement agreement between the parent and the subsidiary has no effect on the classification in the subsidiary.","es":""},"erroneous":true,"correction":{"fr":"","en":"It may create for the subsidiary a cash obligation that changes its classification (IFRS 2).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS2.000105","source":"V2","standard_id":"IFRS2","concept_ids":["IFRS2.RECOGNITION.EQUITY_VS_LIABILITY"],"dimension":"APPLICATION","format":"SINGLE_CHOICE","context":"MANUFACTURING","tested_point":"CREDIT_FOLLOWS_COMMITMENT_AMOUNTS","difficulty":"INTERMEDIATE","estimated_time_s":60,"lesson_id":"LS.IFRS2.000011","review":{"standard_id":"IFRS2","lesson_id":"LS.IFRS2.000011","section_id":"understand"},"references":["IFRS 2 §7","IFRS 2 §30"],"exercise":{"prompt":{"fr":"","en":"Lornel SA recognises for the year €120,000 of expense for a plan that will deliver its own shares to employees and €80,000 for a plan whose bonus will be paid in cash based on the share price (case data). What is the counterpart of these expenses?","es":""},"explanation":{"fr":"","en":"The counterpart follows the entity's commitment: delivering its shares increases equity by €120,000; paying in cash creates a liability of €80,000 (IFRS 2, para. 7).","es":""},"common_error":{"fr":"","en":"Treating both plans the same way because the expense is computed from the share price.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"A liability of €200,000, both plans being commitments towards employees","es":""},"correct":false,"feedback":{"fr":"","en":"The plan that delivers shares commits no cash: its counterpart is in equity, only the cash plan creates a liability.","es":""}},{"id":"B","text":{"fr":"","en":"Equity for €120,000 and a liability for €80,000","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"Equity for €200,000, both plans depending on the share price","es":""},"correct":false,"feedback":{"fr":"","en":"Depending on the share price does not make a plan equity-settled: the bonus paid in cash creates a liability of €80,000.","es":""}},{"id":"D","text":{"fr":"","en":"Equity for €80,000 and a liability for €120,000","es":""},"correct":false,"feedback":{"fr":"","en":"The amounts are reversed: the share delivery (€120,000) goes to equity, the cash payment (€80,000) to a liability.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS2.000106","source":"V2","standard_id":"IFRS2","concept_ids":["IFRS2.AMENDMENTS.NET_SETTLEMENT_TAX"],"dimension":"RULE_KNOWLEDGE","format":"TRUE_FALSE","context":"PHARMA","tested_point":"NET_SETTLEMENT_CLASSIFICATION_TF","difficulty":"INTERMEDIATE","estimated_time_s":30,"lesson_id":"LS.IFRS2.000011","review":{"standard_id":"IFRS2","lesson_id":"LS.IFRS2.000011","section_id":"rule-net-settlement"},"references":["IFRS 2"],"exercise":{"prompt":{"fr":"","en":"A plan that includes a clause for withholding securities to pay the employee's tax is classified as cash-settled as soon as the entity pays the tax.","es":""},"explanation":{"fr":"","en":"The plan stays classified as equity-settled if it would have been so without the clause; the tax payment is deducted from equity (IFRS 2, 2016 amendment).","es":""},"common_error":{"fr":"","en":"Classifying the whole plan as cash-settled because of the net settlement clause.","es":""},"format":"TRUE_FALSE","answer":false},"scope":"CORE_STUDENT"},{"key":"LX.IFRS2.000107","source":"V2","standard_id":"IFRS2","concept_ids":["IFRS2.AMENDMENTS.NET_SETTLEMENT_TAX"],"dimension":"CALCULATION","format":"CALCULATION","context":"PHARMA","tested_point":"WITHHOLDING_AMOUNT_CALC","difficulty":"ADVANCED","estimated_time_s":150,"lesson_id":"LS.IFRS2.000011","review":{"standard_id":"IFRS2","lesson_id":"LS.IFRS2.000011","section_id":"numeric-net"},"references":["IFRS 2"],"exercise":{"prompt":{"fr":"","en":"Pharmalia SA sees 6,600 shares vest for its employees, at a price of €25; the case's withholding tax rate is 40% (case tax law). The entity withholds 2,640 shares (case data) to pay the tax. Calculate the tax to withhold and the net shares delivered.","es":""},"explanation":{"fr":"","en":"6,600 × €25 = €165,000 (given); €165,000 × 40% = €66,000; net shares: 6,600 − 2,640 = 3,960 (2,640 × €25 = €66,000: the withholding equals the tax) (IFRS 2, 2016 amendment).","es":""},"common_error":{"fr":"","en":"Calculating the tax on the net value instead of the gross value.","es":""},"format":"CALCULATION","data":[{"label":{"fr":"","en":"Value of the shares vested (6,600 × €25)","es":""},"value":"165000","unit":"EUR"},{"label":{"fr":"","en":"Withholding rate","es":""},"value":"40","unit":"PERCENT"},{"label":{"fr":"","en":"Shares withheld","es":""},"value":"2640","unit":"UNITS"}],"steps":[{"id":"s1","label":{"fr":"","en":"Tax to withhold","es":""},"answer":66000,"tolerance":0,"unit":"EUR"},{"id":"s2","label":{"fr":"","en":"Net shares delivered","es":""},"answer":3960,"tolerance":0,"unit":"UNITS"}],"formula":{"lines":[{"step":"s1","meaning":{"fr":"","en":"Tax to withhold","es":""},"expression":"a * b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Value of the shares vested (6,600 × €25)","es":""},"value":165000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Withholding rate","es":""},"value":40,"unit":"PERCENT"}],"result":66000,"unit":"EUR"}],"references":["REF.IFRS2.AMD2016.NETSETTLEMENT","REF.IFRS2.AMD2016.EFFECTIVE"]}},"scope":"CORE_STUDENT"},{"key":"LX.IFRS2.000108","source":"V2","standard_id":"IFRS2","concept_ids":["IFRS2.AMENDMENTS.NET_SETTLEMENT_TAX"],"dimension":"JOURNAL_ENTRY","format":"JOURNAL_ENTRY","context":"PHARMA","tested_point":"TAX_PAYMENT_ENTRY","difficulty":"ADVANCED","estimated_time_s":120,"lesson_id":"LS.IFRS2.000011","review":{"standard_id":"IFRS2","lesson_id":"LS.IFRS2.000011","section_id":"numeric-net"},"references":["IFRS 2"],"exercise":{"prompt":{"fr":"","en":"Mélior SA settles an equity plan with statutory tax withholding: it pays €58,000 to the tax authority, an amount equal to the tax due and to the value of the securities withheld. Post the entry for the tax payment (accounts: case convention).","es":""},"explanation":{"fr":"","en":"The payment to the tax authority is deducted from equity: debit the reserve, credit cash, with no expense (IFRS 2, 2016 amendment).","es":""},"common_error":{"fr":"","en":"Debiting the services expense for the tax paid.","es":""},"format":"JOURNAL_ENTRY","accounts":[{"id":"exp","text":{"fr":"","en":"Services expense (share-based payment)","es":""}},{"id":"res","text":{"fr":"","en":"Share-based payment reserve","es":""}},{"id":"cash","text":{"fr":"","en":"Cash","es":""}}],"lines":[{"id":"l1","account":"res","side":"DEBIT","amount":58000,"given":["account","side"]},{"id":"l2","account":"cash","side":"CREDIT","amount":58000,"given":["account","side"]}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS2.000109","source":"V2","standard_id":"IFRS2","concept_ids":["IFRS2.AMENDMENTS.NET_SETTLEMENT_TAX"],"dimension":"PROFESSIONAL_JUDGMENT","format":"SINGLE_CHOICE","context":"PHARMA","tested_point":"EXCESS_WITHHELD_SC","difficulty":"ADVANCED","estimated_time_s":90,"lesson_id":"LS.IFRS2.000011","review":{"standard_id":"IFRS2","lesson_id":"LS.IFRS2.000011","section_id":"rule-net-settlement"},"references":["IFRS 2"],"exercise":{"prompt":{"fr":"","en":"The tax to withhold is €37,000 but the entity withholds securities worth €43,000. How is the €6,000 excess treated?","es":""},"explanation":{"fr":"","en":"If the entity withholds more than the tax obligation, the excess withheld is accounted for as cash-settled: €43,000 − €37,000 = €6,000 (IFRS 2, 2016 amendment).","es":""},"common_error":{"fr":"","en":"Treating the whole amount withheld as equity-settled.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"As equity-settled, like the rest of the withholding","es":""},"correct":false,"feedback":{"fr":"","en":"The excess withheld beyond the tax obligation is treated as cash-settled.","es":""}},{"id":"B","text":{"fr":"","en":"As cash-settled, because the entity withholds more than the tax obligation","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"As a profit or loss expense, unconnected with the plan's classification, whatever its amount","es":""},"correct":false,"feedback":{"fr":"","en":"The excess follows a cash-settlement treatment, not an independent expense.","es":""}},{"id":"D","text":{"fr":"","en":"As an asset to be recovered from the beneficiary, with no effect on equity","es":""},"correct":false,"feedback":{"fr":"","en":"The excess withheld is paid in cash: it is treated as a cash settlement, not as an asset.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS2.000110","source":"V2","standard_id":"IFRS2","concept_ids":["IFRS2.AMENDMENTS.CASH_TO_EQUITY_MODIFICATION"],"dimension":"CALCULATION","format":"CALCULATION","context":"MEDIA","tested_point":"CASH_TO_EQUITY_DIFFERENCE_CALC","difficulty":"INTERMEDIATE","estimated_time_s":150,"lesson_id":"LS.IFRS2.000011","review":{"standard_id":"IFRS2","lesson_id":"LS.IFRS2.000011","section_id":"rule-cash-to-equity"},"references":["IFRS 2"],"exercise":{"prompt":{"fr":"","en":"Jovia SA turns a cash-settled plan into an equity-settled plan. At the modification date: liability derecognised €575,000; fair value of the equity plan €920,000; services received 50% (case data). Calculate the amount taken to equity and the difference going to profit or loss.","es":""},"explanation":{"fr":"","en":"€920,000 × 50% = €460,000; difference: €575,000 − €460,000 = €115,000, recognised immediately in profit or loss (IFRS 2, 2016 amendment).","es":""},"common_error":{"fr":"","en":"Carrying the difference to equity instead of profit or loss.","es":""},"format":"CALCULATION","data":[{"label":{"fr":"","en":"Liability derecognised","es":""},"value":"575000","unit":"EUR"},{"label":{"fr":"","en":"Fair value of the equity plan","es":""},"value":"920000","unit":"EUR"},{"label":{"fr":"","en":"Services received","es":""},"value":"50","unit":"PERCENT"}],"steps":[{"id":"s1","label":{"fr":"","en":"Equity recognised","es":""},"answer":460000,"tolerance":0,"unit":"EUR"},{"id":"s2","label":{"fr":"","en":"Difference going to profit or loss","es":""},"answer":115000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"s1","meaning":{"fr":"","en":"Equity recognised","es":""},"expression":"a * b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Fair value of the equity plan","es":""},"value":920000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Services received","es":""},"value":50,"unit":"PERCENT"}],"result":460000,"unit":"EUR"},{"step":"s2","meaning":{"fr":"","en":"Difference going to profit or loss","es":""},"expression":"a - b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Liability derecognised","es":""},"value":575000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Equity recognised","es":""},"value":460000,"unit":"EUR"}],"result":115000,"unit":"EUR"}],"references":["REF.IFRS2.AMD2016.CASHTOEQUITY","REF.IFRS2.AMD2016.EFFECTIVE"]}},"scope":"CORE_STUDENT"},{"key":"LX.IFRS2.000111","source":"V2","standard_id":"IFRS2","concept_ids":["IFRS2.AMENDMENTS.CASH_TO_EQUITY_MODIFICATION"],"dimension":"JOURNAL_ENTRY","format":"JOURNAL_ENTRY","context":"MEDIA","tested_point":"CASH_TO_EQUITY_ENTRY","difficulty":"ADVANCED","estimated_time_s":150,"lesson_id":"LS.IFRS2.000011","review":{"standard_id":"IFRS2","lesson_id":"LS.IFRS2.000011","section_id":"rule-cash-to-equity"},"references":["IFRS 2"],"exercise":{"prompt":{"fr":"","en":"Take Jovia SA again: liability derecognised of €575,000, equity recognised of €460,000 and a difference of €115,000 in profit or loss. Post the entry at the modification date (accounts: case convention).","es":""},"explanation":{"fr":"","en":"The liability of €575,000 is derecognised in debit; €460,000 is taken to the reserve and the difference of €115,000 goes to profit or loss: €460,000 + €115,000 = €575,000 (IFRS 2, 2016 amendment).","es":""},"common_error":{"fr":"","en":"Taking the whole liability derecognised to the reserve.","es":""},"format":"JOURNAL_ENTRY","accounts":[{"id":"liab","text":{"fr":"","en":"Share-based payment liability","es":""}},{"id":"res","text":{"fr":"","en":"Share-based payment reserve","es":""}},{"id":"pl","text":{"fr":"","en":"Profit or loss (modification difference)","es":""}},{"id":"cash","text":{"fr":"","en":"Cash","es":""}}],"lines":[{"id":"l1","account":"liab","side":"DEBIT","amount":575000,"given":["account","side"]},{"id":"l2","account":"res","side":"CREDIT","amount":460000,"given":["account","side"]},{"id":"l3","account":"pl","side":"CREDIT","amount":115000,"given":["account","side"]}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS2.000112","source":"V2","standard_id":"IFRS2","concept_ids":["IFRS2.AMENDMENTS.CASH_TO_EQUITY_MODIFICATION"],"dimension":"RECOGNITION","format":"SINGLE_CHOICE","context":"MEDIA","tested_point":"CASH_TO_EQUITY_WHERE_DIFFERENCE","difficulty":"INTERMEDIATE","estimated_time_s":60,"lesson_id":"LS.IFRS2.000011","review":{"standard_id":"IFRS2","lesson_id":"LS.IFRS2.000011","section_id":"rule-cash-to-equity"},"references":["IFRS 2"],"exercise":{"prompt":{"fr":"","en":"When an award moves from cash to equity, where is the difference between the liability derecognised and the equity recognised accounted for?","es":""},"explanation":{"fr":"","en":"The difference between the liability derecognised and the amount taken to equity is recognised immediately in profit or loss (IFRS 2, 2016 amendment).","es":""},"common_error":{"fr":"","en":"Carrying the difference between the liability derecognised and the reserve to equity.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Immediately in profit or loss","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"In equity, with the share-based payment reserve","es":""},"correct":false,"feedback":{"fr":"","en":"The difference is not carried to equity: it goes to profit or loss.","es":""}},{"id":"C","text":{"fr":"","en":"In other comprehensive income, until the securities vest","es":""},"correct":false,"feedback":{"fr":"","en":"The standard requires immediate recognition in profit or loss, not deferral.","es":""}},{"id":"D","text":{"fr":"","en":"Spread over the remaining vesting period, like an expense","es":""},"correct":false,"feedback":{"fr":"","en":"The difference is recognised immediately, not spread.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS2.000113","source":"V2","standard_id":"IFRS2","concept_ids":["IFRS2.AMENDMENTS.NET_SETTLEMENT_TAX","IFRS2.AMENDMENTS.CASH_TO_EQUITY_MODIFICATION"],"dimension":"ANALYSIS","format":"ERROR_SPOT","context":"GENERIC","tested_point":"AMENDMENTS_ERROR_SPOT","difficulty":"ADVANCED","estimated_time_s":100,"lesson_id":"LS.IFRS2.000011","review":{"standard_id":"IFRS2","lesson_id":"LS.IFRS2.000011","section_id":"rule-effective"},"references":["IFRS 2"],"exercise":{"prompt":{"fr":"","en":"Spot the erroneous statements about the 2016 amendments on net settlement and the change of classification.","es":""},"explanation":{"fr":"","en":"The statement on the payments made to the tax authority, deducted from equity, and the one on the application date (annual periods beginning on or after 1 January 2018, early application permitted) are correct (IFRS 2, 2016 amendment). The statement that measures the equity-settled award at the fair value at the original grant date (it is measured at the modification date) and the one that leaves the amount withheld beyond the tax due as equity-settled (it is cash-settled) are wrong.","es":""},"common_error":{"fr":"","en":"Measuring at the original grant date and leaving the excess in equity.","es":""},"format":"ERROR_SPOT","statements":[{"id":"s2","text":{"fr":"","en":"In the move from cash to equity, the equity award is measured at the fair value of the original grant date.","es":""},"erroneous":true,"correction":{"fr":"","en":"It is measured at its fair value at the modification date.","es":""}},{"id":"s4","text":{"fr":"","en":"An excess withheld beyond the tax due remains equity-settled like the rest of the plan.","es":""},"erroneous":true,"correction":{"fr":"","en":"The excess withheld is accounted for as cash-settled.","es":""}},{"id":"s1","text":{"fr":"","en":"Payments made by the entity to the tax authority are accounted for as a deduction from equity.","es":""},"erroneous":false},{"id":"s3","text":{"fr":"","en":"The amendments apply to annual periods beginning on or after 1 January 2018, with early application permitted.","es":""},"erroneous":false}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS2.000114","source":"V2","standard_id":"IFRS2","concept_ids":["IFRS2.AMENDMENTS.NET_SETTLEMENT_TAX","IFRS2.AMENDMENTS.CASH_TO_EQUITY_MODIFICATION","IFRS2.RECOGNITION.EQUITY_VS_LIABILITY"],"dimension":"PROFESSIONAL_JUDGMENT","format":"MINI_CASE","context":"MEDIA","tested_point":"TAX_AND_RECLASS_MINI_CASE","difficulty":"EXPERT","estimated_time_s":300,"lesson_id":"LS.IFRS2.000011","review":{"standard_id":"IFRS2","lesson_id":"LS.IFRS2.000011","section_id":"judgment"},"references":["IFRS 2","IFRS 2 §7","IFRS 2 §30"],"exercise":{"prompt":{"fr":"","en":"Deal with two transactions of Lorrel SA.","es":""},"explanation":{"fr":"","en":"Plan 1: tax of €85,000 deducted from equity, with no excess. Plan 2: €220,000 in equity and a difference of €13,000 immediately in profit or loss (IFRS 2, 2016 amendment).","es":""},"common_error":{"fr":"","en":"Applying one plan's rule to the other.","es":""},"format":"MINI_CASE","scenario":{"fr":"","en":"Lorrel SA has two plans (case data). Plan 1, equity-settled with statutory tax withholding: value of the shares vested €340,000, withholding rate 25%; the entity withholds securities for exactly the tax due. Plan 2, cash-settled then converted into an equity-settled plan: liability derecognised €233,000, fair value of the equity plan at the modification date €440,000, services received 50%.","es":""},"parts":[{"prompt":{"fr":"","en":"Calculate the tax withheld in plan 1.","es":""},"explanation":{"fr":"","en":"€340,000 × 25% = €85,000; the value of the securities withheld equals the tax: no excess (IFRS 2, 2016 amendment).","es":""},"common_error":{"fr":"","en":"Applying the rate to the net amount.","es":""},"format":"CALCULATION","data":[{"label":{"fr":"","en":"Value of the shares vested","es":""},"value":"340000","unit":"EUR"},{"label":{"fr":"","en":"Withholding rate","es":""},"value":"25","unit":"PERCENT"}],"steps":[{"id":"c1","label":{"fr":"","en":"Tax withheld","es":""},"answer":85000,"tolerance":0,"unit":"EUR"}],"id":"p1","dimension":"CALCULATION","formula":{"lines":[{"step":"c1","meaning":{"fr":"","en":"Tax withheld","es":""},"expression":"a * b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Value of the shares vested","es":""},"value":340000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Withholding rate","es":""},"value":25,"unit":"PERCENT"}],"result":85000,"unit":"EUR"}],"references":["REF.IFRS2.AMD2016.NETSETTLEMENT","REF.IFRS2.AMD2016.EFFECTIVE","REF.IFRS2.AMD2016.CASHTOEQUITY","REF.IFRS2.7","REF.IFRS2.30"]}},{"prompt":{"fr":"","en":"Calculate, for plan 2, the equity recognised and the difference in profit or loss.","es":""},"explanation":{"fr":"","en":"€440,000 × 50% = €220,000; difference: €233,000 − €220,000 = €13,000 immediately in profit or loss (IFRS 2, 2016 amendment).","es":""},"common_error":{"fr":"","en":"Taking the difference to equity.","es":""},"format":"CALCULATION","data":[{"label":{"fr":"","en":"Liability derecognised","es":""},"value":"233000","unit":"EUR"},{"label":{"fr":"","en":"Fair value of the equity plan","es":""},"value":"440000","unit":"EUR"},{"label":{"fr":"","en":"Services received","es":""},"value":"50","unit":"PERCENT"}],"steps":[{"id":"d1","label":{"fr":"","en":"Equity recognised","es":""},"answer":220000,"tolerance":0,"unit":"EUR"},{"id":"d2","label":{"fr":"","en":"Difference in profit or loss","es":""},"answer":13000,"tolerance":0,"unit":"EUR"}],"id":"p2","dimension":"CALCULATION","formula":{"lines":[{"step":"d1","meaning":{"fr":"","en":"Equity recognised","es":""},"expression":"a * b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Fair value of the equity plan","es":""},"value":440000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Services received","es":""},"value":50,"unit":"PERCENT"}],"result":220000,"unit":"EUR"},{"step":"d2","meaning":{"fr":"","en":"Difference in profit or loss","es":""},"expression":"a - b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Liability derecognised","es":""},"value":233000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Equity recognised","es":""},"value":220000,"unit":"EUR"}],"result":13000,"unit":"EUR"}],"references":["REF.IFRS2.AMD2016.NETSETTLEMENT","REF.IFRS2.AMD2016.EFFECTIVE","REF.IFRS2.AMD2016.CASHTOEQUITY","REF.IFRS2.7","REF.IFRS2.30"]}},{"prompt":{"fr":"","en":"What does Lorrel do with the €85,000 payment to the tax authority in plan 1?","es":""},"explanation":{"fr":"","en":"Payments made to the tax authority are accounted for as a deduction from equity (IFRS 2, 2016 amendment).","es":""},"common_error":{"fr":"","en":"Charging the tax payment to profit or loss.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"It deducts it from equity","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"It recognises it as a profit or loss expense","es":""},"correct":false,"feedback":{"fr":"","en":"The tax payment of a plan classified as equity-settled is deducted from equity.","es":""}},{"id":"C","text":{"fr":"","en":"It recognises it as a receivable from the employees","es":""},"correct":false,"feedback":{"fr":"","en":"The tax is the employees', but the amount withheld is charged to equity, not recorded as a receivable.","es":""}},{"id":"D","text":{"fr":"","en":"It recognises it as a liability to the tax authority until the following year","es":""},"correct":false,"feedback":{"fr":"","en":"The payment is made: there is no liability left; it reduces equity.","es":""}}],"id":"p3","dimension":"RECOGNITION"}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS2.000115","source":"V2","standard_id":"IFRS2","concept_ids":["IFRS2.DISCLOSURES.NATURE_AND_EXTENT","IFRS2.DISCLOSURES.FAIR_VALUE_AND_EXPENSE"],"dimension":"RECOGNITION","format":"CLASSIFICATION","context":"GENERIC","tested_point":"DISCLOSURE_FAMILY_SORTING","difficulty":"BEGINNER","estimated_time_s":90,"lesson_id":"LS.IFRS2.000012","review":{"standard_id":"IFRS2","lesson_id":"LS.IFRS2.000012","section_id":"rule-fair-value-expense"},"references":["IFRS 2 §44","IFRS 2 §47","IFRS 2 §50","IFRS 2 §51","IFRS 2 §52"],"exercise":{"prompt":{"fr":"","en":"Sort each piece of information according to the family of information it belongs to.","es":""},"explanation":{"fr":"","en":"Conditions and terms describe the nature of the arrangements; expense, fair value and liabilities fall under the second family (IFRS 2).","es":""},"common_error":{"fr":"","en":"Mixing up the description of the arrangements and the amounts.","es":""},"format":"CLASSIFICATION","categories":[{"id":"NAT","text":{"fr":"","en":"Nature and extent of the arrangements","es":""}},{"id":"FV","text":{"fr":"","en":"Fair value, expense and liabilities","es":""}}],"items":[{"id":"i1","text":{"fr":"","en":"The vesting conditions of each type of plan","es":""},"category":"NAT"},{"id":"i2","text":{"fr":"","en":"The maximum term of the options granted","es":""},"category":"NAT"},{"id":"i3","text":{"fr":"","en":"The total expense for the period, with the equity-settled part distinguished","es":""},"category":"FV"},{"id":"i4","text":{"fr":"","en":"The carrying amount of liabilities at the reporting date","es":""},"category":"FV"}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS2.000116","source":"V2","standard_id":"IFRS2","concept_ids":["IFRS2.DISCLOSURES.NATURE_AND_EXTENT"],"dimension":"RULE_KNOWLEDGE","format":"TRUE_FALSE","context":"GENERIC","tested_point":"DISCLOSURE_MAIN_PLAN_ONLY_TF","difficulty":"BEGINNER","estimated_time_s":30,"lesson_id":"LS.IFRS2.000012","review":{"standard_id":"IFRS2","lesson_id":"LS.IFRS2.000012","section_id":"rule-nature"},"references":["IFRS 2 §44"],"exercise":{"prompt":{"fr":"","en":"An entity with three types of arrangements in place may leave out of the notes the types of arrangements that cost the least.","es":""},"explanation":{"fr":"","en":"The information covers each type of arrangement existing during the period (IFRS 2).","es":""},"common_error":{"fr":"","en":"Describing only the main plan and omitting the other types of arrangements.","es":""},"format":"TRUE_FALSE","answer":false},"scope":"CORE_STUDENT","reserve":true},{"key":"LX.IFRS2.000117","source":"V2","standard_id":"IFRS2","concept_ids":["IFRS2.DISCLOSURES.FAIR_VALUE_AND_EXPENSE"],"dimension":"RECOGNITION","format":"SINGLE_CHOICE","context":"TELECOM","tested_point":"EXPENSE_DISTINGUISH_EQUITY_SC","difficulty":"INTERMEDIATE","estimated_time_s":60,"lesson_id":"LS.IFRS2.000012","review":{"standard_id":"IFRS2","lesson_id":"LS.IFRS2.000012","section_id":"rule-fair-value-expense"},"references":["IFRS 2 §47","IFRS 2 §50","IFRS 2 §51","IFRS 2 §52"],"exercise":{"prompt":{"fr":"","en":"How must the information on the total expense for a period be presented when the entity has both equity plans and cash plans?","es":""},"explanation":{"fr":"","en":"The total expense is given distinguishing the part from equity-settled transactions (IFRS 2).","es":""},"common_error":{"fr":"","en":"Providing the total expense without distinguishing equity-settled transactions.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"As a single total amount, with no distinction between types of plans, and without mentioning the inputs","es":""},"correct":false,"feedback":{"fr":"","en":"The information must distinguish the equity-settled part from the rest.","es":""}},{"id":"B","text":{"fr":"","en":"Plan by plan, with no total for the period","es":""},"correct":false,"feedback":{"fr":"","en":"The total expense for the period is precisely the information requested, with the distinction.","es":""}},{"id":"C","text":{"fr":"","en":"In the management commentary, outside the notes, without touching the financial statements themselves","es":""},"correct":false,"feedback":{"fr":"","en":"The information is given in the notes to the financial statements.","es":""}},{"id":"D","text":{"fr":"","en":"With the part arising from equity-settled transactions distinguished","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS2.000118","source":"V2","standard_id":"IFRS2","concept_ids":["IFRS2.DISCLOSURES.FAIR_VALUE_AND_EXPENSE"],"dimension":"RULE_KNOWLEDGE","format":"MATCHING","context":"PHARMA","tested_point":"MODEL_INPUTS_DISCLOSED_MATCH","difficulty":"BEGINNER","estimated_time_s":75,"lesson_id":"LS.IFRS2.000012","review":{"standard_id":"IFRS2","lesson_id":"LS.IFRS2.000012","section_id":"rule-fair-value-expense"},"references":["IFRS 2 §47","IFRS 2 §50","IFRS 2 §51","IFRS 2 §52"],"exercise":{"prompt":{"fr":"","en":"Match each piece of information with the family of information it illustrates.","es":""},"explanation":{"fr":"","en":"Model inputs belong to fair value, the carrying amount of liabilities to the liabilities item, and the tax estimate to additional information (IFRS 2).","es":""},"common_error":{"fr":"","en":"Placing a model's data under the description of the arrangement.","es":""},"format":"MATCHING","left":[{"id":"L1","text":{"fr":"","en":"The expected volatility and risk-free rate used by the model","es":""}},{"id":"L2","text":{"fr":"","en":"The total carrying amount of cash liabilities at the reporting date","es":""}},{"id":"L3","text":{"fr":"","en":"The amount the entity expects to transfer to the tax authority for the withholding tax","es":""}}],"right":[{"id":"R1","text":{"fr":"","en":"How fair value was determined","es":""}},{"id":"R2","text":{"fr":"","en":"Liabilities","es":""}},{"id":"R3","text":{"fr":"","en":"Additional information","es":""}},{"id":"R4","text":{"fr":"","en":"Description of the arrangement","es":""}}],"pairs":[{"left":"L1","right":"R1"},{"left":"L2","right":"R2"},{"left":"L3","right":"R3"}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS2.000119","source":"V2","standard_id":"IFRS2","concept_ids":["IFRS2.DISCLOSURES.FAIR_VALUE_AND_EXPENSE"],"dimension":"ANALYSIS","format":"SINGLE_CHOICE","context":"AUTOMOTIVE","tested_point":"NOTE_ADEQUACY_ANALYSIS","difficulty":"ADVANCED","estimated_time_s":100,"lesson_id":"LS.IFRS2.000012","review":{"standard_id":"IFRS2","lesson_id":"LS.IFRS2.000012","section_id":"judgment"},"references":["IFRS 2 §47","IFRS 2 §50","IFRS 2 §51","IFRS 2 §52"],"exercise":{"prompt":{"fr":"","en":"A note gives a total expense of €275,000 and a closing liability, without saying what part of the expense comes from equity-settled plans, or which model inputs were used. What should be concluded?","es":""},"explanation":{"fr":"","en":"The equity-settled part of the expense and the model inputs are missing: the entity adds them to meet the disclosure objectives (IFRS 2).","es":""},"common_error":{"fr":"","en":"Settling for the global amounts without assessing the disclosure objective.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The information is sufficient, because the total expense and the liability give the financial effect of the plan","es":""},"correct":false,"feedback":{"fr":"","en":"Without the equity-settled part or the inputs, the reader cannot assess the measurement or the nature of the expense.","es":""}},{"id":"B","text":{"fr":"","en":"The equity-settled part is missing; the model inputs are optional","es":""},"correct":false,"feedback":{"fr":"","en":"Model inputs are part of the information on how fair value was determined.","es":""}},{"id":"C","text":{"fr":"","en":"The information is insufficient: the equity-settled part and the inputs are missing and must be added","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"The information is incomplete as soon as the amount exceeds a materiality threshold set by the standard","es":""},"correct":false,"feedback":{"fr":"","en":"The standard sets no numerical threshold; the assessment looks at the disclosure objectives.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS2.000120","source":"V2","standard_id":"IFRS2","concept_ids":["IFRS2.DISCLOSURES.FAIR_VALUE_AND_EXPENSE"],"dimension":"APPLICATION","format":"TRUE_FALSE","context":"AUTOMOTIVE","tested_point":"FURTHER_INFORMATION_TAX_ESTIMATE","difficulty":"INTERMEDIATE","estimated_time_s":60,"lesson_id":"LS.IFRS2.000012","review":{"standard_id":"IFRS2","lesson_id":"LS.IFRS2.000012","section_id":"rule-fair-value-expense"},"references":["IFRS 2 §47","IFRS 2 §50","IFRS 2 §51","IFRS 2 §52"],"exercise":{"prompt":{"fr":"","en":"If the listed information is not enough to meet the objectives, the entity may refrain from providing more.","es":""},"explanation":{"fr":"","en":"The entity provides the additional information necessary to meet the objectives (IFRS 2).","es":""},"common_error":{"fr":"","en":"Sticking to the lists although the disclosure objective is not met.","es":""},"format":"TRUE_FALSE","answer":false},"scope":"CORE_STUDENT"},{"key":"LX.IFRS2.000121","source":"V2","standard_id":"IFRS2","concept_ids":["IFRS2.DISCLOSURES.NATURE_AND_EXTENT","IFRS2.DISCLOSURES.FAIR_VALUE_AND_EXPENSE"],"dimension":"ANALYSIS","format":"MINI_CASE","context":"INSURANCE","tested_point":"DRAFT_NOTE_MINI_CASE","difficulty":"ADVANCED","estimated_time_s":240,"lesson_id":"LS.IFRS2.000012","review":{"standard_id":"IFRS2","lesson_id":"LS.IFRS2.000012","section_id":"example-note"},"references":["IFRS 2 §44","IFRS 2 §47","IFRS 2 §50","IFRS 2 §51","IFRS 2 §52"],"exercise":{"prompt":{"fr":"","en":"Review Assuria SA's proposed note.","es":""},"explanation":{"fr":"","en":"The proposed note must describe the conditions and terms of each type of arrangement, explain fair value with the inputs, distinguish the equity-settled part of the expense and give the cash liability (IFRS 2).","es":""},"common_error":{"fr":"","en":"Limiting oneself to the total expense.","es":""},"format":"MINI_CASE","scenario":{"fr":"","en":"Assuria SA's proposed note (case data) states: option plan for 25 managers, settled in shares; plan of rights payable in cash for directors; total expense for the period €530,000; no detail on the vesting conditions, on the maximum term of the options, or on the cash liability.","es":""},"parts":[{"prompt":{"fr":"","en":"Which gaps does the proposed note show? (several answers)","es":""},"explanation":{"fr":"","en":"The description of conditions and terms, and the cash liability, are missing (IFRS 2).","es":""},"common_error":{"fr":"","en":"Looking for gaps in personal data rather than in the families of information.","es":""},"format":"MULTIPLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The vesting conditions and the maximum term are not described","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"The carrying amount of the cash liability is not given","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"The names of the 25 managers are not given","es":""},"correct":false,"feedback":{"fr":"","en":"The notes describe types of arrangements, not the identity of beneficiaries.","es":""}},{"id":"D","text":{"fr":"","en":"The share price per manager is not given","es":""},"correct":false,"feedback":{"fr":"","en":"The price is not information attached to a beneficiary.","es":""}}],"id":"p1","dimension":"ANALYSIS"},{"prompt":{"fr":"","en":"The total expense of €530,000 should be presented with the part from equity-settled transactions distinguished.","es":""},"explanation":{"fr":"","en":"The total expense is given distinguishing the equity-settled part (IFRS 2).","es":""},"common_error":{"fr":"","en":"Giving a single total.","es":""},"format":"TRUE_FALSE","answer":true,"id":"p2","dimension":"RECOGNITION"},{"prompt":{"fr":"","en":"What information on measurement must the entity add for the option plan?","es":""},"explanation":{"fr":"","en":"The information on fair value includes how it was determined and the model inputs (IFRS 2).","es":""},"common_error":{"fr":"","en":"Adding general data unrelated to the measurement.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The number of employees in the group","es":""},"correct":false,"feedback":{"fr":"","en":"This general figure does not explain the measurement of the options.","es":""}},{"id":"B","text":{"fr":"","en":"How fair value was determined, with the model inputs","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"The detail of the 25 managers' salaries","es":""},"correct":false,"feedback":{"fr":"","en":"Salaries are not inputs to the valuation of an option.","es":""}},{"id":"D","text":{"fr":"","en":"The list of the entity's suppliers","es":""},"correct":false,"feedback":{"fr":"","en":"This list has no link with the measurement of the plan.","es":""}}],"id":"p3","dimension":"ANALYSIS"}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS2.000122","source":"V2","standard_id":"IFRS2","concept_ids":["IFRS2.DISCLOSURES.NATURE_AND_EXTENT"],"dimension":"RULE_KNOWLEDGE","format":"FILL_BLANK","context":"GENERIC","tested_point":"DISCLOSURE_FILL_BLANK","difficulty":"BEGINNER","estimated_time_s":60,"lesson_id":"LS.IFRS2.000012","review":{"standard_id":"IFRS2","lesson_id":"LS.IFRS2.000012","section_id":"rule-nature"},"references":["IFRS 2 §44"],"exercise":{"prompt":{"fr":"","en":"Complete the sentence.","es":""},"explanation":{"fr":"","en":"The description covers each type of arrangement, with its vesting conditions and the maximum term of the options (IFRS 2).","es":""},"common_error":{"fr":"","en":"Describing by beneficiary instead of by type of arrangement.","es":""},"format":"FILL_BLANK","text":{"fr":"","en":"The notes describe each {{objet}} of arrangement, with its {{cond}} conditions and the maximum term of the options.","es":""},"blanks":[{"id":"objet","mode":"CHOICE","choices":[{"id":"type","text":{"fr":"","en":"type","es":""}},{"id":"emp","text":{"fr":"","en":"beneficiary","es":""}}],"answer":"type"},{"id":"cond","mode":"CHOICE","choices":[{"id":"acq","text":{"fr":"","en":"vesting","es":""}},{"id":"ven","text":{"fr":"","en":"sale","es":""}}],"answer":"acq"}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS2.000123","source":"V2","standard_id":"IFRS2","concept_ids":["IFRS2.INTERACTIONS.IAS32"],"dimension":"RULE_KNOWLEDGE","format":"SINGLE_CHOICE","context":"GENERIC","tested_point":"STANDARD_FOR_EMPLOYEE_OPTIONS_SC","difficulty":"BEGINNER","estimated_time_s":30,"lesson_id":"LS.IFRS2.000013","review":{"standard_id":"IFRS2","lesson_id":"LS.IFRS2.000013","section_id":"rule-ias32"},"references":["IFRS 2"],"exercise":{"prompt":{"fr":"","en":"An entity grants its employees options on its own shares in exchange for their services. Which standard governs this transaction?","es":""},"explanation":{"fr":"","en":"Services received against equity instruments are a share-based payment transaction: IFRS 2 (IFRS 2).","es":""},"common_error":{"fr":"","en":"Applying IAS 32 whenever equity instruments are issued, or IAS 19 whenever an employee is remunerated.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"IAS 32, because the entity issues equity instruments","es":""},"correct":false,"feedback":{"fr":"","en":"These transactions are excluded from the scope of IAS 32 and come under IFRS 2.","es":""}},{"id":"B","text":{"fr":"","en":"IFRS 2, because it is a share-based payment transaction","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"IAS 33, which governs employee options","es":""},"correct":false,"feedback":{"fr":"","en":"IAS 33 measures earnings per share; it does not say how to account for the transaction.","es":""}},{"id":"D","text":{"fr":"","en":"IAS 19, because it is remuneration paid to employees","es":""},"correct":false,"feedback":{"fr":"","en":"IAS 19 excludes from its scope the employee benefits that fall under IFRS 2; options granted for services are among them.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS2.000124","source":"V2","standard_id":"IFRS2","concept_ids":["IFRS2.INTERACTIONS.IAS32"],"dimension":"APPLICATION","format":"CLASSIFICATION","context":"INDUSTRIAL","tested_point":"SORT_CONTRACTS_BY_STANDARD","difficulty":"INTERMEDIATE","estimated_time_s":75,"lesson_id":"LS.IFRS2.000013","review":{"standard_id":"IFRS2","lesson_id":"LS.IFRS2.000013","section_id":"example-ias32"},"references":["IFRS 2"],"exercise":{"prompt":{"fr":"","en":"Sort each Brevane SA contract according to the standard that governs it.","es":""},"explanation":{"fr":"","en":"Goods and services received against securities come under IFRS 2; the purchase of a non-financial item falling within the scope of IAS 32 and IFRS 9 (contract not held for the entity's own requirements, case datum) stays under those standards (IFRS 2).","es":""},"common_error":{"fr":"","en":"Relying on the word \"option\" or \"instrument\" rather than on what the entity receives.","es":""},"format":"CLASSIFICATION","categories":[{"id":"c1","text":{"fr":"","en":"IFRS 2","es":""}},{"id":"c2","text":{"fr":"","en":"IAS 32 or IFRS 9","es":""}}],"items":[{"id":"i1","text":{"fr":"","en":"Options granted to a consultant in exchange for his services","es":""},"category":"c1"},{"id":"i2","text":{"fr":"","en":"Purchase of wheat at a fixed price, with possible net cash close-out, outside the entity's own requirements (case datum)","es":""},"category":"c2"},{"id":"i3","text":{"fr":"","en":"Shares handed to a machinery supplier in payment for deliveries","es":""},"category":"c1"},{"id":"i4","text":{"fr":"","en":"Forward purchase of copper, settleable net in cash, outside the entity's own requirements (case datum)","es":""},"category":"c2"}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS2.000125","source":"V2","standard_id":"IFRS2","concept_ids":["IFRS2.INTERACTIONS.IAS32"],"dimension":"ANALYSIS","format":"MULTIPLE_CHOICE","context":"MINING","tested_point":"NON_FINANCIAL_CONTRACT_MC","difficulty":"ADVANCED","estimated_time_s":105,"lesson_id":"LS.IFRS2.000013","review":{"standard_id":"IFRS2","lesson_id":"LS.IFRS2.000013","section_id":"rule-ias32"},"references":["IFRS 2"],"exercise":{"prompt":{"fr":"","en":"Gorvane SA enters into a contract to buy nickel, closable net in cash, with a supplier that is also a shareholder; the contract is not held for Gorvane's own usage requirements (case datum). Which statements are correct? (several answers)","es":""},"explanation":{"fr":"","en":"The subject is a non-financial item and the contract is not held for the entity's own requirements (case datum): it comes under IAS 32 and IFRS 9 and leaves IFRS 2 (IFRS 2).","es":""},"common_error":{"fr":"","en":"Deducing the standard from the counterparty's status rather than from the purpose of the contract.","es":""},"format":"MULTIPLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Net cash close-out brings the contract into IFRS 2","es":""},"correct":false,"feedback":{"fr":"","en":"Net settlement does not bring the contract closer to IFRS 2: a purchase of a non-financial item is not a share-based payment.","es":""}},{"id":"B","text":{"fr":"","en":"The contract concerns a non-financial item bought for its price","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"The contract comes under IAS 32 and IFRS 9 and falls outside the scope of IFRS 2","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"The contract is a share-based payment transaction because the supplier is a shareholder","es":""},"correct":false,"feedback":{"fr":"","en":"Being a shareholder does not change the subject of the contract: a non-financial item purchased.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS2.000126","source":"V2","standard_id":"IFRS2","concept_ids":["IFRS2.INTERACTIONS.IAS33_DILUTION"],"dimension":"RULE_KNOWLEDGE","format":"SINGLE_CHOICE","context":"FINANCE","tested_point":"CASH_SETTLED_IN_DILUTED_EPS_SC","difficulty":"BEGINNER","estimated_time_s":45,"lesson_id":"LS.IFRS2.000013","review":{"standard_id":"IFRS2","lesson_id":"LS.IFRS2.000013","section_id":"rule-ias33"},"references":["IFRS 2"],"exercise":{"prompt":{"fr":"","en":"How does a share appreciation rights programme, settled in cash, enter diluted earnings per share?","es":""},"explanation":{"fr":"","en":"A cash-settled programme is ignored in diluted earnings (IAS 33).","es":""},"common_error":{"fr":"","en":"Treating a cash programme as a share option.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"It is ignored, because it creates no shares","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"As a share option, with the exercise price as proceeds","es":""},"correct":false,"feedback":{"fr":"","en":"A cash-settled programme delivers no shares: it has no exercise proceeds.","es":""}},{"id":"C","text":{"fr":"","en":"As ordinary shares issued at the grant date","es":""},"correct":false,"feedback":{"fr":"","en":"No share is issued at the grant date for this programme.","es":""}},{"id":"D","text":{"fr":"","en":"Through the fair value of the services still to be received, added to the denominator","es":""},"correct":false,"feedback":{"fr":"","en":"This fair value is used for the assumed proceeds of share options, not to count cash programmes.","es":""}}]},"scope":"CORE_STUDENT","reserve":true},{"key":"LX.IFRS2.000127","source":"V2","standard_id":"IFRS2","concept_ids":["IFRS2.INTERACTIONS.IAS33_DILUTION"],"dimension":"RULE_KNOWLEDGE","format":"MULTIPLE_CHOICE","context":"TECH","tested_point":"ASSUMED_PROCEEDS_MC","difficulty":"INTERMEDIATE","estimated_time_s":75,"lesson_id":"LS.IFRS2.000013","review":{"standard_id":"IFRS2","lesson_id":"LS.IFRS2.000013","section_id":"rule-ias33"},"references":["IFRS 2"],"exercise":{"prompt":{"fr":"","en":"Which items enter the assumed proceeds of exercise of an employee option settled in shares? (several answers)","es":""},"explanation":{"fr":"","en":"Assumed proceeds = exercise price + fair value of services still to be received (IAS 33).","es":""},"common_error":{"fr":"","en":"Leaving out the expense not yet recognised from the assumed proceeds.","es":""},"format":"MULTIPLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The expense already recognised in prior years","es":""},"correct":false,"feedback":{"fr":"","en":"It is the expense not yet recognised that enters the proceeds, not the expense already booked.","es":""}},{"id":"B","text":{"fr":"","en":"The amount paid to the tax authority on the plan","es":""},"correct":false,"feedback":{"fr":"","en":"The tax payment is a separate matter, with no role in the assumed proceeds.","es":""}},{"id":"C","text":{"fr":"","en":"The exercise price","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"The fair value of the services still to be received","es":""},"correct":true}]},"scope":"CORE_STUDENT","reserve":true},{"key":"LX.IFRS2.000128","source":"V2","standard_id":"IFRS2","concept_ids":["IFRS2.INTERACTIONS.IAS33_DILUTION"],"dimension":"ANALYSIS","format":"ERROR_SPOT","context":"SOFTWARE","tested_point":"DILUTION_ERROR_SPOT","difficulty":"ADVANCED","estimated_time_s":105,"lesson_id":"LS.IFRS2.000013","review":{"standard_id":"IFRS2","lesson_id":"LS.IFRS2.000013","section_id":"example-ias33"},"references":["IFRS 2"],"exercise":{"prompt":{"fr":"","en":"Spot the erroneous statements in a note on employee options and diluted earnings (IAS 33).","es":""},"explanation":{"fr":"","en":"The statement on the assumed proceeds (exercise price and fair value of the services still to be received) and the one on the entity-choice programme, treated as equity-settled for this calculation, are correct (IAS 33). The statement that counts a cash-settled programme in diluted earnings (it is ignored) and the one that makes the option more dilutive when more services remain to be received (the assumed proceeds are higher, so the option is less dilutive) are wrong.","es":""},"common_error":{"fr":"","en":"Reversing the direction of the effect of services still to be received.","es":""},"format":"ERROR_SPOT","statements":[{"id":"e2","text":{"fr":"","en":"A cash-settled programme is counted in diluted earnings as an option.","es":""},"erroneous":true,"correction":{"fr":"","en":"A cash-settled programme is ignored in diluted earnings.","es":""}},{"id":"e1","text":{"fr":"","en":"The assumed proceeds include the exercise price and the fair value of services still to be received.","es":""},"erroneous":false},{"id":"e3","text":{"fr":"","en":"When the entity chooses the settlement method, the programme is treated as equity-settled for this calculation.","es":""},"erroneous":false},{"id":"e4","text":{"fr":"","en":"The more services remain to be received, the more dilutive the option.","es":""},"erroneous":true,"correction":{"fr":"","en":"The more services remain to be received, the higher the assumed proceeds and the less dilutive the option.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS2.000129","source":"V2","standard_id":"IFRS2","concept_ids":["IFRS2.INTERACTIONS.IFRIC_AGENDA_DECISIONS"],"dimension":"RULE_KNOWLEDGE","format":"SINGLE_CHOICE","context":"GENERIC","tested_point":"AGENDA_DECISION_NATURE_SC","difficulty":"INTERMEDIATE","estimated_time_s":60,"lesson_id":"LS.IFRS2.000013","review":{"standard_id":"IFRS2","lesson_id":"LS.IFRS2.000013","section_id":"rule-ifric"},"references":["IFRS 2"],"exercise":{"prompt":{"fr":"","en":"What is the nature of an agenda decision of the Interpretations Committee?","es":""},"explanation":{"fr":"","en":"An agenda decision explains how the standard applies to a question submitted to the Committee; it neither adds nor amends any requirement.","es":""},"common_error":{"fr":"","en":"Taking an agenda decision for an amendment of the standard.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"An amendment of the standard, applicable as soon as it is published","es":""},"correct":false,"feedback":{"fr":"","en":"An agenda decision does not amend the standard.","es":""}},{"id":"B","text":{"fr":"","en":"A new rule filling a gap in the standard","es":""},"correct":false,"feedback":{"fr":"","en":"It adds no rule: it sheds light on how existing paragraphs apply.","es":""}},{"id":"C","text":{"fr":"","en":"A staff working paper unrelated to the standard","es":""},"correct":false,"feedback":{"fr":"","en":"It is a Committee decision, tied to the standard on which the question was raised.","es":""}},{"id":"D","text":{"fr":"","en":"An explanation of how the existing standard applies","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS2.000130","source":"V2","standard_id":"IFRS2","concept_ids":["IFRS2.INTERACTIONS.IFRIC_AGENDA_DECISIONS"],"dimension":"ANALYSIS","format":"MULTIPLE_CHOICE","context":"TELECOM","tested_point":"IFRIC_2006_STATEMENTS_MC","difficulty":"ADVANCED","estimated_time_s":120,"lesson_id":"LS.IFRS2.000013","review":{"standard_id":"IFRS2","lesson_id":"LS.IFRS2.000013","section_id":"example-ifric2006"},"references":["IFRS 2"],"exercise":{"prompt":{"fr":"","en":"About the 2006 agenda decision on the entity's choice of settlement, which statements are correct? (several answers)","es":""},"explanation":{"fr":"","en":"The 2006 decision confirms that the plan is within IFRS 2 even if the amount settled does not track the share price, so the paragraphs on the entity's choice and the present obligation analysis apply (IFRS Interpretations Committee agenda decision of 2006).","es":""},"common_error":{"fr":"","en":"Reading the decision as an exception for choices unrelated to the share price.","es":""},"format":"MULTIPLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The paragraphs on the entity's choice apply even if the amount settled does not vary with the share price","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"The decision creates an exception for choices unrelated to the share price","es":""},"correct":false,"feedback":{"fr":"","en":"It is the opposite: the decision confirms that such plans are within IFRS 2 and its rules on the entity's choice.","es":""}},{"id":"C","text":{"fr":"","en":"The decisive question is whether the entity has a present obligation to settle in cash","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"The Committee decided not to add the question to its agenda","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS2.000131","source":"V2","standard_id":"IFRS2","concept_ids":["IFRS2.INTERACTIONS.IFRIC_AGENDA_DECISIONS"],"dimension":"PROFESSIONAL_JUDGMENT","format":"SINGLE_CHOICE","context":"AEROSPACE","tested_point":"ENTITY_CHOICE_NO_LINK_TO_PRICE_SC","difficulty":"ADVANCED","estimated_time_s":180,"lesson_id":"LS.IFRS2.000013","review":{"standard_id":"IFRS2","lesson_id":"LS.IFRS2.000013","section_id":"judgment"},"references":["IFRS 2"],"exercise":{"prompt":{"fr":"","en":"Harvane SA's plan lets management settle in cash or in shares, with no link to the share price. The finance director argues that the 2006 decision removes the need to analyse an obligation to settle in cash. Which answer is best founded?","es":""},"explanation":{"fr":"","en":"The 2006 decision confirms that the plan is within IFRS 2 even with no link to the share price; the rules on the entity's choice apply and the conclusion depends on whether a present obligation exists (IFRS Interpretations Committee agenda decision of 2006).","es":""},"common_error":{"fr":"","en":"Reading an agenda decision as a waiver of analysis.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Yes: with no link to the share price, the plan is equity-settled","es":""},"correct":false,"feedback":{"fr":"","en":"The absence of a link to the share price does not remove the present obligation analysis.","es":""}},{"id":"B","text":{"fr":"","en":"Yes: an agenda decision amended the standard on this point","es":""},"correct":false,"feedback":{"fr":"","en":"An agenda decision explains the standard; it does not amend it.","es":""}},{"id":"C","text":{"fr":"","en":"No: the analysis of a present obligation is still required, despite the absence of a link","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"No: the plan is cash-settled as soon as the entity has the ability to do so, since the choice belongs to it","es":""},"correct":false,"feedback":{"fr":"","en":"The ability on its own does not allow a conclusion: one must assess whether a present obligation exists.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS2.000132","source":"V2","standard_id":"IFRS2","concept_ids":["IFRS2.INTERACTIONS.IFRIC_AGENDA_DECISIONS"],"dimension":"ANALYSIS","format":"CLASSIFICATION","context":"BANKING","tested_point":"WEIGHT_OF_DOCUMENTS_CLASSIFICATION","difficulty":"ADVANCED","estimated_time_s":90,"lesson_id":"LS.IFRS2.000013","review":{"standard_id":"IFRS2","lesson_id":"LS.IFRS2.000013","section_id":"rule-ifric"},"references":["IFRS 2"],"exercise":{"prompt":{"fr":"","en":"Sort each document according to whether it sets a requirement or serves as context.","es":""},"explanation":{"fr":"","en":"The standard and its amendments set requirements; agenda decisions and staff papers explain or shed light (IFRS Interpretations Committee agenda decision of 2006).","es":""},"common_error":{"fr":"","en":"Giving a Committee explanation the value of a requirement.","es":""},"format":"CLASSIFICATION","categories":[{"id":"c1","text":{"fr":"","en":"Requirement","es":""}},{"id":"c2","text":{"fr":"","en":"Context or explanation","es":""}}],"items":[{"id":"i1","text":{"fr":"","en":"The text of IFRS 2","es":""},"category":"c1"},{"id":"i2","text":{"fr":"","en":"The 2006 agenda decision","es":""},"category":"c2"},{"id":"i3","text":{"fr":"","en":"The 2016 amendments to IFRS 2","es":""},"category":"c1"},{"id":"i4","text":{"fr":"","en":"A staff analysis paper of the Committee","es":""},"category":"c2"},{"id":"i5","text":{"fr":"","en":"A Committee explanation of how the standard applies to a specific question","es":""},"category":"c2"}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS2.000133","source":"V2","standard_id":"IFRS2","concept_ids":["IFRS2.INTERACTIONS.IAS12_DEFERRED_TAX"],"dimension":"CALCULATION","format":"CALCULATION","context":"CHEMICALS","tested_point":"DEFERRED_TAX_CALC","difficulty":"ADVANCED","estimated_time_s":150,"lesson_id":"LS.IFRS2.000014","review":{"standard_id":"IFRS2","lesson_id":"LS.IFRS2.000014","section_id":"numeric-ias12"},"references":["IFRS 2"],"exercise":{"prompt":{"fr":"","en":"Brelvane SA closes with a cumulative expense of €236,000, an expected tax deduction of €298,000 (intrinsic value × vested share, given) and a tax rate of 20% (case data). Calculate the deferred tax asset, the excess deduction and the tax effect taken to equity.","es":""},"explanation":{"fr":"","en":"€298,000 × 20% = €59,600; excess: €298,000 − €236,000 = €62,000; effect in equity: €62,000 × 20% = €12,400; rest in profit or loss: €59,600 − €12,400 = €47,200 (IAS 12).","es":""},"common_error":{"fr":"","en":"Applying the rate to the cumulative expense instead of the expected deduction.","es":""},"format":"CALCULATION","data":[{"label":{"fr":"","en":"Cumulative expense","es":""},"value":"236000","unit":"EUR"},{"label":{"fr":"","en":"Expected tax deduction","es":""},"value":"298000","unit":"EUR"},{"label":{"fr":"","en":"Tax rate","es":""},"value":"20","unit":"PERCENT"}],"steps":[{"id":"s1","label":{"fr":"","en":"Deferred tax asset","es":""},"answer":59600,"tolerance":0,"unit":"EUR"},{"id":"s2","label":{"fr":"","en":"Excess deduction","es":""},"answer":62000,"tolerance":0,"unit":"EUR"},{"id":"s3","label":{"fr":"","en":"Tax effect in equity","es":""},"answer":12400,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"s1","meaning":{"fr":"","en":"Deferred tax asset","es":""},"expression":"a * b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Expected tax deduction","es":""},"value":298000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Tax rate","es":""},"value":20,"unit":"PERCENT"}],"result":59600,"unit":"EUR"},{"step":"s2","meaning":{"fr":"","en":"Excess deduction","es":""},"expression":"a - b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Expected tax deduction","es":""},"value":298000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Cumulative expense","es":""},"value":236000,"unit":"EUR"}],"result":62000,"unit":"EUR"},{"step":"s3","meaning":{"fr":"","en":"Tax effect in equity","es":""},"expression":"a * b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Excess deduction","es":""},"value":62000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Tax rate","es":""},"value":20,"unit":"PERCENT"}],"result":12400,"unit":"EUR"}],"references":["REF.IFRS2.IAS12.DEFERREDTAX"]}},"scope":"CORE_STUDENT"},{"key":"LX.IFRS2.000134","source":"V2","standard_id":"IFRS2","concept_ids":["IFRS2.INTERACTIONS.IAS12_DEFERRED_TAX"],"dimension":"JOURNAL_ENTRY","format":"JOURNAL_ENTRY","context":"ENERGY","tested_point":"DEFERRED_TAX_ENTRY","difficulty":"ADVANCED","estimated_time_s":150,"lesson_id":"LS.IFRS2.000014","review":{"standard_id":"IFRS2","lesson_id":"LS.IFRS2.000014","section_id":"entry-ias12"},"references":["IFRS 2"],"exercise":{"prompt":{"fr":"","en":"Take Brelvane SA again: deferred tax asset of €59,600, of which €12,400 for the tax effect of the excess deduction and €47,200 for the expense recognised. Post the entry at the reporting date (accounts: case convention).","es":""},"explanation":{"fr":"","en":"The asset is debited €59,600; €47,200 is credited to deferred tax income and €12,400 to equity: €47,200 + €12,400 = €59,600 (IAS 12).","es":""},"common_error":{"fr":"","en":"Crediting the whole deferred tax asset to profit or loss.","es":""},"format":"JOURNAL_ENTRY","accounts":[{"id":"dta","text":{"fr":"","en":"Deferred tax asset","es":""}},{"id":"tax","text":{"fr":"","en":"Deferred tax income (profit or loss)","es":""}},{"id":"eq","text":{"fr":"","en":"Equity (tax effect of the excess)","es":""}},{"id":"cash","text":{"fr":"","en":"Cash","es":""}}],"lines":[{"id":"l1","account":"dta","side":"DEBIT","amount":59600,"given":["account","side"]},{"id":"l2","account":"tax","side":"CREDIT","amount":47200,"given":["account","side"]},{"id":"l3","account":"eq","side":"CREDIT","amount":12400,"given":["account","side"]}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS2.000135","source":"V2","standard_id":"IFRS2","concept_ids":["IFRS2.INTERACTIONS.IAS12_DEFERRED_TAX"],"dimension":"ANALYSIS","format":"SINGLE_CHOICE","context":"LOGISTICS","tested_point":"NO_EXCESS_TAX_EFFECT_SC","difficulty":"INTERMEDIATE","estimated_time_s":75,"lesson_id":"LS.IFRS2.000014","review":{"standard_id":"IFRS2","lesson_id":"LS.IFRS2.000014","section_id":"rule-ias12"},"references":["IFRS 2"],"exercise":{"prompt":{"fr":"","en":"A plan's expected tax deduction is €144,000 and its cumulative expense is €177,000. Where does the tax effect of the deferred tax asset go?","es":""},"explanation":{"fr":"","en":"If the expected deduction is lower than or equal to the cumulative expense, the whole tax effect goes to profit or loss (IAS 12).","es":""},"common_error":{"fr":"","en":"Creating an excess in equity from a deduction below the expense.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"To equity, for €33,000, being the gap between the expense and the deduction","es":""},"correct":false,"feedback":{"fr":"","en":"€33,000 is the opposite gap: the deduction is below the expense, so there is no excess.","es":""}},{"id":"B","text":{"fr":"","en":"Half to profit or loss, half to equity","es":""},"correct":false,"feedback":{"fr":"","en":"The split depends on any excess of the deduction over the expense, not on a half.","es":""}},{"id":"C","text":{"fr":"","en":"Entirely to profit or loss, as the deduction is below the expense","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"As a reduction of the plan's cumulative expense","es":""},"correct":false,"feedback":{"fr":"","en":"The tax effect does not change the plan's cumulative expense; it is shown in tax.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS2.000136","source":"V2","standard_id":"IFRS2","concept_ids":["IFRS2.INTERACTIONS.IAS12_DEFERRED_TAX"],"dimension":"ANALYSIS","format":"ERROR_SPOT","context":"AUTOMOTIVE","tested_point":"DEFERRED_TAX_ERROR_SPOT","difficulty":"EXPERT","estimated_time_s":180,"lesson_id":"LS.IFRS2.000014","review":{"standard_id":"IFRS2","lesson_id":"LS.IFRS2.000014","section_id":"rule-ias12"},"references":["IFRS 2"],"exercise":{"prompt":{"fr":"","en":"Spot the erroneous statements in a note on the deferred tax of an option plan (IAS 12).","es":""},"explanation":{"fr":"","en":"The statement on the deferred tax asset (expected deduction multiplied by the rate) and the one on the expected deduction based on intrinsic value and the vested share are correct (IAS 12). The statement that takes the tax effect of the excess to profit or loss (it goes to equity) and the one that has IFRS 2 set the rate (the rate is a tax datum of the case) are wrong.","es":""},"common_error":{"fr":"","en":"Mixing up the destination of the excess and attributing the rate to the standard.","es":""},"format":"ERROR_SPOT","statements":[{"id":"e1","text":{"fr":"","en":"The deferred tax asset is measured on the expected deduction multiplied by the tax rate.","es":""},"erroneous":false},{"id":"e2","text":{"fr":"","en":"When the expected deduction exceeds the cumulative expense, the tax effect of the excess goes to profit or loss.","es":""},"erroneous":true,"correction":{"fr":"","en":"The tax effect of the excess is recognised directly in equity.","es":""}},{"id":"e4","text":{"fr":"","en":"The tax rate is set by IFRS 2.","es":""},"erroneous":true,"correction":{"fr":"","en":"The tax rate is that of the applicable tax law; IFRS 2 sets none.","es":""}},{"id":"e3","text":{"fr":"","en":"The expected deduction rests on the intrinsic value at the reporting date and the vested share.","es":""},"erroneous":false}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS2.000137","source":"V2","standard_id":"IFRS2","concept_ids":["IFRS2.INTERACTIONS.IFRS3_REPLACEMENT_AWARDS"],"dimension":"CALCULATION","format":"CALCULATION","context":"BIOTECH","tested_point":"REPLACEMENT_PRE_PART_CALC","difficulty":"ADVANCED","estimated_time_s":120,"lesson_id":"LS.IFRS2.000014","review":{"standard_id":"IFRS2","lesson_id":"LS.IFRS2.000014","section_id":"numeric-ifrs3"},"references":["IFRS 2"],"exercise":{"prompt":{"fr":"","en":"Tolvane SA acquires Perrel SA and replaces its employees' options. Fair value of the replacement award: €620,000; pre-combination service share: 35% (case data). Calculate the part included in the consideration transferred and the part that will be an expense after the combination.","es":""},"explanation":{"fr":"","en":"€620,000 × 35% = €217,000 in the consideration transferred; balance: €620,000 − €217,000 = €403,000, an expense over the remaining period (IFRS 3).","es":""},"common_error":{"fr":"","en":"Recognising the pre-combination service part as an expense.","es":""},"format":"CALCULATION","data":[{"label":{"fr":"","en":"Fair value of the replacement award","es":""},"value":"620000","unit":"EUR"},{"label":{"fr":"","en":"Pre-combination service share","es":""},"value":"35","unit":"PERCENT"}],"steps":[{"id":"s1","label":{"fr":"","en":"Part in the consideration transferred","es":""},"answer":217000,"tolerance":0,"unit":"EUR"},{"id":"s2","label":{"fr":"","en":"Post-combination expense","es":""},"answer":403000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"s1","meaning":{"fr":"","en":"Part in the consideration transferred","es":""},"expression":"a * b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Fair value of the replacement award","es":""},"value":620000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Pre-combination service share","es":""},"value":35,"unit":"PERCENT"}],"result":217000,"unit":"EUR"},{"step":"s2","meaning":{"fr":"","en":"Post-combination expense","es":""},"expression":"a - b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Fair value of the replacement award","es":""},"value":620000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Part in the consideration transferred","es":""},"value":217000,"unit":"EUR"}],"result":403000,"unit":"EUR"}],"references":["REF.IFRS2.IFRS3.REPLACEMENT"]}},"scope":"CORE_STUDENT"},{"key":"LX.IFRS2.000138","source":"V2","standard_id":"IFRS2","concept_ids":["IFRS2.INTERACTIONS.IFRS3_REPLACEMENT_AWARDS"],"dimension":"RULE_KNOWLEDGE","format":"SINGLE_CHOICE","context":"RETAIL","tested_point":"REPLACEMENT_PARTS_SC","difficulty":"INTERMEDIATE","estimated_time_s":60,"lesson_id":"LS.IFRS2.000014","review":{"standard_id":"IFRS2","lesson_id":"LS.IFRS2.000014","section_id":"rule-ifrs3"},"references":["IFRS 2"],"exercise":{"prompt":{"fr":"","en":"In a business combination, what becomes of the part of the fair value of a replacement award that relates to pre-combination service?","es":""},"explanation":{"fr":"","en":"The pre-combination service part is part of the consideration transferred (IFRS 3).","es":""},"common_error":{"fr":"","en":"Confusing pre-combination and post-combination service.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"It is an expense of the first period after the combination","es":""},"correct":false,"feedback":{"fr":"","en":"The post-combination expense relates to service to come, not service already rendered.","es":""}},{"id":"B","text":{"fr":"","en":"It is part of the consideration transferred","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"It is added to the acquirer's equity with no effect on the price","es":""},"correct":false,"feedback":{"fr":"","en":"This part enters the consideration transferred, hence the price of the combination.","es":""}},{"id":"D","text":{"fr":"","en":"It is cancelled, because the acquiree loses its awards","es":""},"correct":false,"feedback":{"fr":"","en":"The replacement award exists: it is split between pre- and post-combination service.","es":""}}]},"scope":"CORE_STUDENT","reserve":true},{"key":"LX.IFRS2.000139","source":"V2","standard_id":"IFRS2","concept_ids":["IFRS2.INTERACTIONS.IFRS3_REPLACEMENT_AWARDS"],"dimension":"APPLICATION","format":"MATCHING","context":"INDUSTRIAL","tested_point":"REPLACEMENT_TREATMENTS_MATCHING","difficulty":"ADVANCED","estimated_time_s":105,"lesson_id":"LS.IFRS2.000014","review":{"standard_id":"IFRS2","lesson_id":"LS.IFRS2.000014","section_id":"numeric-ifrs3"},"references":["IFRS 2"],"exercise":{"prompt":{"fr":"","en":"Match each amount of Vorlane SA's replacement award with its treatment. Case data: fair value €420,000, pre-combination share 30%, i.e. €126,000; balance of €294,000 spread over three years.","es":""},"explanation":{"fr":"","en":"€126,000 (30% of €420,000) enters the consideration transferred; €294,000 is a post-combination expense, i.e. €98,000 per year over three years (IFRS 3).","es":""},"common_error":{"fr":"","en":"Matching the pre-combination amount with the annual expense.","es":""},"format":"MATCHING","left":[{"id":"a","text":{"fr":"","en":"€126,000","es":""}},{"id":"b","text":{"fr":"","en":"€294,000","es":""}},{"id":"c","text":{"fr":"","en":"€98,000 per year","es":""}}],"right":[{"id":"x","text":{"fr":"","en":"Expense spread over the remaining period after the combination","es":""}},{"id":"y","text":{"fr":"","en":"Annual expense of the post-combination period","es":""}},{"id":"z","text":{"fr":"","en":"Included in the consideration transferred","es":""}}],"pairs":[{"left":"a","right":"z"},{"left":"b","right":"x"},{"left":"c","right":"y"}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS2.000140","source":"V2","standard_id":"IFRS2","concept_ids":["IFRS2.INTERACTIONS.IFRS3_REPLACEMENT_AWARDS"],"dimension":"PROFESSIONAL_JUDGMENT","format":"SINGLE_CHOICE","context":"FINANCE","tested_point":"PRE_COMBINATION_SHARE_JUDGMENT_SC","difficulty":"ADVANCED","estimated_time_s":180,"lesson_id":"LS.IFRS2.000014","review":{"standard_id":"IFRS2","lesson_id":"LS.IFRS2.000014","section_id":"judgment"},"references":["IFRS 2"],"exercise":{"prompt":{"fr":"","en":"Wendrel SA's consolidation manager writes: \"the pre-combination service share is 50% in every combination\". Which answer is best founded in this course?","es":""},"explanation":{"fr":"","en":"The course gives the pre-combination service share as case data; the method is read in IFRS 3 and no uniform rate is taught as a rule (IFRS 3).","es":""},"common_error":{"fr":"","en":"Generalising a case percentage into a rule.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"That percentage is case data; the method is read in IFRS 3","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"It is correct: IFRS 2 sets one half for combinations of this kind","es":""},"correct":false,"feedback":{"fr":"","en":"IFRS 2 sets no share of this kind; the course treats the share as case data.","es":""}},{"id":"C","text":{"fr":"","en":"It is correct, but for equity-settled plans","es":""},"correct":false,"feedback":{"fr":"","en":"The settlement method does not set a uniform percentage either.","es":""}},{"id":"D","text":{"fr":"","en":"It is incorrect because the pre-combination part is zero","es":""},"correct":false,"feedback":{"fr":"","en":"A pre-combination part can exist; it is then part of the consideration transferred.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS2.000001","standard_id":"IFRS2","concept_ids":["IFRS2.SCOPE.SBP_TRANSACTION"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IFRS2.000001","tested_point":"QST.IFRS2.000001","difficulty":"BEGINNER","source":"V1","format":"TRUE_FALSE","estimated_time_s":45,"lesson_id":null,"review":{"standard_id":"IFRS2","lesson_id":"LS.IFRS2.000001","section_id":"understand"},"references":["IFRS 2 §2"],"exercise":{"prompt":{"fr":"","en":"Vektra SA pays its sales staff each year a cash bonus equal to 3% of revenue, with no link to the price of its shares; this bonus is a share-based payment transaction.","es":""},"explanation":{"fr":"","en":"A share-based payment transaction is an exchange of goods or services for equity instruments of the entity, or for a liability based on the price of its shares or other equity instruments (IFRS 2, para. 2). Vektra's bonus depends on revenue, not on the share price: it falls outside that definition. Trap: Seeing a share-based payment transaction in any payment made to employees. Rule to remember: The transaction needs equity instruments of the entity or a liability based on their price (IFRS 2, para. 2).","es":""},"common_error":{"fr":"","en":"Calling any cash remuneration a share-based payment, without looking at what determines its amount.","es":""},"format":"TRUE_FALSE","answer":false},"scope":"CORE_STUDENT"},{"key":"QST.IFRS2.000002","standard_id":"IFRS2","concept_ids":["IFRS2.SCOPE.SBP_TRANSACTION"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IFRS2.000002","tested_point":"QST.IFRS2.000002","difficulty":"BEGINNER","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":80,"lesson_id":null,"review":{"standard_id":"IFRS2","lesson_id":"LS.IFRS2.000001","section_id":"understand"},"references":["IFRS 2 §2"],"exercise":{"prompt":{"fr":"","en":"Which of these situations is a share-based payment transaction?","es":""},"explanation":{"fr":"","en":"A transaction is share-based when the entity receives goods or services in return for equity instruments that it issues, or for a liability based on the price of its shares (IFRS 2, para. 2). The consulting firm is paid in shares of the entity: this is an equity-settled transaction. Trap: Limiting the scope to employees or including any bonus. Rule to remember: Goods or services received for equity instruments of the entity, or for a liability based on their price (IFRS 2, para. 2).","es":""},"common_error":{"fr":"","en":"Confusing share-based payment with any variable remuneration paid to employees.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"An executive receives a cash bonus equal to 5% of the entity's profit for the year.","es":""},"correct":false,"feedback":{"fr":"","en":"This bonus depends on the profit for the year, not on the share price: the liability it creates is not based on the share price (IFRS 2, para. 2). Rule to remember: The liability must be based on the share price or on other equity instruments (IFRS 2, para. 2).","es":""}},{"id":"B","text":{"fr":"","en":"A consulting firm receives shares of the entity in return for the services it provides to the entity.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"A supplier is paid in cash, at a price set in euros, for goods delivered to the entity.","es":""},"correct":false,"feedback":{"fr":"","en":"The price is set in euros for goods: neither equity instruments of the entity nor a liability based on their price are involved in the settlement (IFRS 2, para. 2). Rule to remember: A purchase settled in cash at a fixed price is not a share-based payment (IFRS 2, para. 2).","es":""}},{"id":"D","text":{"fr":"","en":"A company buys back its own shares from a shareholder for cash, with no service received.","es":""},"correct":false,"feedback":{"fr":"","en":"A buy-back from a shareholder is not an exchange of goods or services for equity instruments: the entity receives no service (IFRS 2, para. 2). Rule to remember: The transaction requires goods or services to be received (IFRS 2, para. 2).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS2.000003","standard_id":"IFRS2","concept_ids":["IFRS2.SCOPE.SBP_TRANSACTION"],"dimension":"ANALYSIS","context":"V1_QST.IFRS2.000003","tested_point":"QST.IFRS2.000003","difficulty":"BEGINNER","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":100,"lesson_id":null,"review":{"standard_id":"IFRS2","lesson_id":"LS.IFRS2.000001","section_id":"understand"},"references":["IFRS 2 §2"],"exercise":{"prompt":{"fr":"","en":"A colleague writes: \"IFRS 2 covers option plans reserved for executives; shares given to a supplier in return for its services are not covered.\" What is the error in this reasoning?","es":""},"explanation":{"fr":"","en":"Equity instruments of the entity given to a supplier in exchange for its services form an equity-settled transaction (IFRS 2, para. 2). The scope is not limited to executives or even to employees: it is defined by the nature of the exchange. Trap: Limiting the scope to executive option plans. Rule to remember: The counterparty may be a supplier or a service provider (IFRS 2, para. 2).","es":""},"common_error":{"fr":"","en":"Limiting the scope to executive option plans and excluding suppliers and service providers.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"She forgets that option plans fall within the standard from the time executives exercise them.","es":""},"correct":false,"feedback":{"fr":"","en":"The standard applies to the exchange of services for equity instruments, not from exercise; the colleague does not mention exercise and the error lies elsewhere (IFRS 2, para. 2). Rule to remember: The scope is defined by the exchange, not by the exercise date (IFRS 2, para. 2).","es":""}},{"id":"B","text":{"fr":"","en":"She confuses share-based payment with a post-employment benefit, which is specific to employees, an area dealt with by another standard than the one on share-based payments.","es":""},"correct":false,"feedback":{"fr":"","en":"The colleague does not mention post-employment benefits: her error is restricting the scope to executives (IFRS 2, para. 2). Rule to remember: Share-based payment is not reserved for one category of beneficiaries (IFRS 2, para. 2).","es":""}},{"id":"C","text":{"fr":"","en":"She wrongly classifies the shares given to the supplier among cash-settled transactions.","es":""},"correct":false,"feedback":{"fr":"","en":"The colleague says nothing about how the shares given to the supplier are settled: issued shares fall under equity settlement (IFRS 2, para. 2). Rule to remember: Shares given in return for services are equity-settled (IFRS 2, para. 2).","es":""}},{"id":"D","text":{"fr":"","en":"She limits the scope to executives, whereas equity instruments given to a supplier for its services are covered too.","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS2.000004","standard_id":"IFRS2","concept_ids":["IFRS2.SCOPE.SETTLEMENT_CLASSIFICATION"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IFRS2.000004","tested_point":"QST.IFRS2.000004","difficulty":"BEGINNER","source":"V1","format":"MULTIPLE_CHOICE","estimated_time_s":120,"lesson_id":null,"review":{"standard_id":"IFRS2","lesson_id":"LS.IFRS2.000001","section_id":"rule-settlement"},"references":["IFRS 2 §2","IFRS 2 §30"],"exercise":{"prompt":{"fr":"","en":"Which statements about the settlement method of an award are correct? More than one answer is possible.","es":""},"explanation":{"fr":"","en":"Three methods must be told apart: equity settlement, cash settlement (a liability based on the share price) and the settlement alternative where the entity or the counterparty chooses (IFRS 2, paras. 2 and 30). The classification follows what the entity delivers, not how sensitive the value is to the share price nor who the beneficiary is. Trap: Classifying as cash-settled an award settled in shares because its value depends on the share price. Rule to remember: The settlement method is read from what the entity delivers or must deliver (IFRS 2, para. 2).","es":""},"common_error":{"fr":"","en":"Classifying as cash-settled an award settled in shares because its value depends on the share price.","es":""},"format":"MULTIPLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"An award is cash-settled as soon as its value depends on the share price, even when it is settled in shares.","es":""},"correct":false,"feedback":{"fr":"","en":"An award settled in shares remains equity-settled even if its value moves with the share price: it is the manner of settlement that determines the classification (IFRS 2, para. 2). Rule to remember: Settlement in shares makes an equity-settled transaction (IFRS 2, para. 2).","es":""}},{"id":"B","text":{"fr":"","en":"In a transaction with a settlement alternative, the settlement method depends on a choice made by the entity or by the counterparty.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"In a cash-settled transaction, the entity incurs a liability based on the price of its shares or other equity instruments.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"The settlement method is deduced from the nature of the counterparty: employee, supplier or service provider.","es":""},"correct":false,"feedback":{"fr":"","en":"The nature of the counterparty does not determine the settlement method: an employee and a supplier alike can receive shares or cash (IFRS 2, para. 2). Rule to remember: The classification depends on what the entity delivers or must deliver, not on who receives it (IFRS 2, para. 2).","es":""}},{"id":"E","text":{"fr":"","en":"In an equity-settled transaction, the counterparty receives equity instruments of the entity.","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS2.000005","standard_id":"IFRS2","concept_ids":["IFRS2.SCOPE.SETTLEMENT_CLASSIFICATION"],"dimension":"APPLICATION","context":"V1_QST.IFRS2.000005","tested_point":"QST.IFRS2.000005","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":130,"lesson_id":null,"review":{"standard_id":"IFRS2","lesson_id":"LS.IFRS2.000001","section_id":"rule-settlement"},"references":["IFRS 2 §2","IFRS 2 §30"],"exercise":{"prompt":{"fr":"","en":"After three years of service, Lumen SA promises its executives 100 shares of Lumen issued by the company; the value of these shares moves with the share price. How is the award classified?","es":""},"explanation":{"fr":"","en":"The award is settled by delivering shares issued by Lumen: it is an equity-settled transaction (IFRS 2, para. 2). The liability of a cash-settled transaction is based on the share price and is settled in cash or other assets (IFRS 2, para. 30); that is not the case here. Trap: Classifying as cash-settled an award settled in shares because its value depends on the share price. Rule to remember: The classification follows the settlement: shares delivered make an equity-settled transaction (IFRS 2, para. 2).","es":""},"common_error":{"fr":"","en":"Classifying as cash-settled an award settled in shares because its value depends on the share price.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Equity-settled, because the executives receive shares issued by Lumen.","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"Cash-settled, because the value the executives receive depends on the share price.","es":""},"correct":false,"feedback":{"fr":"","en":"Settlement is in shares and not through a liability to the executives: the change in value of the shares does not make it a cash-settled transaction (IFRS 2, para. 30). Rule to remember: A liability based on the share price implies settlement in cash or other assets (IFRS 2, para. 30).","es":""}},{"id":"C","text":{"fr":"","en":"With a settlement alternative, because the executives may prefer to resell the shares received.","es":""},"correct":false,"feedback":{"fr":"","en":"The ability to resell the shares after delivery is unrelated to the settlement method: a settlement alternative requires a choice between cash and shares (IFRS 2, para. 2). Rule to remember: A settlement alternative concerns what the entity delivers (IFRS 2, para. 2).","es":""}},{"id":"D","text":{"fr":"","en":"Outside the scope, because the number of shares delivered is fixed in advance.","es":""},"correct":false,"feedback":{"fr":"","en":"A fixed number of shares delivered for services is the typical equity-settled transaction, which is within the scope (IFRS 2, para. 2). Rule to remember: A number fixed in advance does not take the transaction out of the standard (IFRS 2, para. 2).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS2.000007","standard_id":"IFRS2","concept_ids":["IFRS2.SCOPE.GRANT_DATE"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IFRS2.000007","tested_point":"QST.IFRS2.000007","difficulty":"BEGINNER","source":"V1","format":"TRUE_FALSE","estimated_time_s":45,"lesson_id":null,"review":{"standard_id":"IFRS2","lesson_id":"LS.IFRS2.000003","section_id":"rule-grant-date"},"references":["IFRS 2"],"exercise":{"prompt":{"fr":"","en":"A share-based payment arrangement is granted as soon as the plan is communicated to the counterparty, even if a required approval, for example that of the shareholders, has not yet been obtained.","es":""},"explanation":{"fr":"","en":"The grant date is the date when the entity and the counterparty agree on the terms of the share-based payment arrangement, all necessary approvals (for example that of the shareholders) having been obtained (IFRS 2, Appendix A). As long as a required approval is missing, the grant date has not been reached. Trap: Using the date the plan is communicated while an approval is still required. Rule to remember: Agreement on the terms and approvals obtained (IFRS 2, Appendix A).","es":""},"common_error":{"fr":"","en":"Taking the date the plan is communicated as the grant date while an approval is still required.","es":""},"format":"TRUE_FALSE","answer":false},"scope":"CORE_STUDENT"},{"key":"QST.IFRS2.000008","standard_id":"IFRS2","concept_ids":["IFRS2.SCOPE.GRANT_DATE"],"dimension":"APPLICATION","context":"V1_QST.IFRS2.000008","tested_point":"QST.IFRS2.000008","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":130,"lesson_id":null,"review":{"standard_id":"IFRS2","lesson_id":"LS.IFRS2.000003","section_id":"rule-grant-date"},"references":["IFRS 2"],"exercise":{"prompt":{"fr":"","en":"On 1 December, Alba SA communicates an option plan to its executives. The services concerned start on the following 1 January. The plan is subject to approval by the general meeting, obtained on 15 February; the terms do not change on that occasion. What is the grant date?","es":""},"explanation":{"fr":"","en":"The grant date is the date when the entity and the counterparty agree on the terms, all necessary approvals having been obtained (IFRS 2, Appendix A). Here the general meeting's approval is obtained on 15 February: that date, later than the start of the services, is the one retained. Trap: Using the date the plan is communicated while an approval is still required. Rule to remember: Agreement on the terms and approvals obtained (IFRS 2, Appendix A).","es":""},"common_error":{"fr":"","en":"Taking the date the plan is communicated as the grant date while an approval is still required.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"15 February, the date on which the required approval is obtained and the agreement is complete.","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"1 December, the date on which the plan is communicated to all the executives concerned.","es":""},"correct":false,"feedback":{"fr":"","en":"Communicating the plan is not enough while the general meeting's approval is missing: the agreement is not yet complete (IFRS 2, Appendix A). Rule to remember: The necessary approvals condition the grant date (IFRS 2, Appendix A).","es":""}},{"id":"C","text":{"fr":"","en":"1 January, the date on which the executives start rendering the services of the plan.","es":""},"correct":false,"feedback":{"fr":"","en":"The start of the services does not fix the grant date: it is defined by the agreement and the approvals, and can be later than the start of the services (IFRS 2, Appendix A). Rule to remember: Grant date and start of services are two distinct dates (IFRS 2, Appendix A).","es":""}},{"id":"D","text":{"fr":"","en":"The exercise date of the options, when the executives become owners of the shares.","es":""},"correct":false,"feedback":{"fr":"","en":"Exercise comes after the grant and the vesting: it is not the date when the parties agree on the terms (IFRS 2, Appendix A). Rule to remember: The grant date precedes the vesting period (IFRS 2, Appendix A).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS2.000009","standard_id":"IFRS2","concept_ids":["IFRS2.SCOPE.GRANT_DATE"],"dimension":"ANALYSIS","context":"V1_QST.IFRS2.000009","tested_point":"QST.IFRS2.000009","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":100,"lesson_id":null,"review":{"standard_id":"IFRS2","lesson_id":"LS.IFRS2.000003","section_id":"rule-grant-date"},"references":["IFRS 2"],"exercise":{"prompt":{"fr":"","en":"An analyst writes: \"The employees' services started on 1 January, but the plan was only approved on 15 February; there is therefore nothing to recognise for January and February, because fair value is only defined at the grant date.\" What is the error in this reasoning?","es":""},"explanation":{"fr":"","en":"The grant date, defined in Appendix A of IFRS 2, may be later than the start of the services; in that case the fair value at the grant date is estimated for the service period elapsed before that date (IFRS 2). The analyst is wrong to conclude that there is nothing to recognise for January and February. Trap: Forgetting to estimate the fair value for the service period elapsed before the grant date. Rule to remember: The grant-date fair value is estimated for services rendered before that date (IFRS 2).","es":""},"common_error":{"fr":"","en":"Forgetting to estimate the fair value for the service period elapsed before the grant date.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"He uses the approval date, whereas the grant date is the date the plan is communicated to the employees.","es":""},"correct":false,"feedback":{"fr":"","en":"The grant date requires the necessary approvals to be obtained: the analyst is right to use the approval date and not the date the plan is communicated (IFRS 2, Appendix A). Rule to remember: The necessary approvals condition the grant date (IFRS 2, Appendix A).","es":""}},{"id":"B","text":{"fr":"","en":"He counts services received since 1 January, whereas services are received from the grant date onwards, which delays recognition of everything before that date.","es":""},"correct":false,"feedback":{"fr":"","en":"Services rendered since 1 January are services received: they do not depend on the grant date, which serves to fix the fair value (IFRS 2, Appendix A). Rule to remember: The grant date fixes the measurement; it does not shift the receipt of services (IFRS 2, Appendix A).","es":""}},{"id":"C","text":{"fr":"","en":"He forgets that, when services start before the grant date, the fair value at that date is estimated for the earlier service period.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"He makes the start of the services the grant date, whereas the grant date is the approval date.","es":""},"correct":false,"feedback":{"fr":"","en":"The analyst does not make the start of the services the grant date: he does use 15 February as the date that defines the fair value (IFRS 2, Appendix A). Rule to remember: Start of services and grant date remain distinct (IFRS 2, Appendix A).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS2.000010","standard_id":"IFRS2","concept_ids":["IFRS2.SCOPE.EXCLUSIONS","IFRS2.SCOPE.SBP_TRANSACTION"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IFRS2.000010","tested_point":"QST.IFRS2.000010","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":80,"lesson_id":null,"review":{"standard_id":"IFRS2","lesson_id":"LS.IFRS2.000001","section_id":"rule-exclusions"},"references":["IFRS 2 §2","IFRS 2"],"exercise":{"prompt":{"fr":"","en":"Cobalt SA pays its employees two cash bonuses: bonus X, equal to 4% of the profit for the year, and bonus Y, equal to the rise in Cobalt's share price multiplied by 500. Which treatment is correct?","es":""},"explanation":{"fr":"","en":"IAS 19 applies to employee benefits other than those within IFRS 2 (IAS 19, para. 2). A cash bonus computed on profit is an employee benefit; a bonus computed by reference to the entity's share price is a cash-settled transaction under IFRS 2 (IFRS 2, para. 2). Trap: Applying IFRS 2 to any payment made to employees. Rule to remember: The link with the share price separates IFRS 2 from employee benefits (IFRS 2, para. 2).","es":""},"common_error":{"fr":"","en":"Applying IFRS 2 to any payment made to employees, whatever determines its amount.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Bonus X is an employee benefit within IAS 19; bonus Y is a cash-settled transaction within IFRS 2.","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"Both bonuses fall within IFRS 2, because both are paid in cash to employees of the entity.","es":""},"correct":false,"feedback":{"fr":"","en":"Payment in cash to employees is not enough: the liability must also be based on the share price (IFRS 2, para. 2). Bonus X is not. Rule to remember: A bonus unrelated to the share price does not fall within IFRS 2 (IFRS 2, para. 2).","es":""}},{"id":"C","text":{"fr":"","en":"Both bonuses fall within IAS 19, because both remunerate services rendered by employees.","es":""},"correct":false,"feedback":{"fr":"","en":"IAS 19 does not cover benefits that fall within IFRS 2: bonus Y, computed on the share price, is a cash-settled transaction (IFRS 2, para. 2). Rule to remember: A bonus based on the share price falls within IFRS 2 (IFRS 2, para. 2).","es":""}},{"id":"D","text":{"fr":"","en":"Bonus X falls within IFRS 2 and bonus Y within IAS 19, because profit is a performance measure of the entity, an indicator that would be enough to bring the bonus into the standard.","es":""},"correct":false,"feedback":{"fr":"","en":"Profit is not a share price: it is bonus Y, indexed to the share price, that falls within IFRS 2, not bonus X (IFRS 2, para. 2). Rule to remember: The test is the link with the share price, not the nature of the performance measure (IFRS 2, para. 2).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS2.000011","standard_id":"IFRS2","concept_ids":["IFRS2.SCOPE.EXCLUSIONS"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IFRS2.000011","tested_point":"QST.IFRS2.000011","difficulty":"INTERMEDIATE","source":"V1","format":"MULTIPLE_CHOICE","estimated_time_s":120,"lesson_id":null,"review":{"standard_id":"IFRS2","lesson_id":"LS.IFRS2.000001","section_id":"rule-exclusions"},"references":["IFRS 2 §6","IFRS 2"],"exercise":{"prompt":{"fr":"","en":"Which statements about transactions outside the scope of IFRS 2 are correct? More than one answer is possible.","es":""},"explanation":{"fr":"","en":"Contracts within IAS 32 (purchases of non-financial items that can be settled net, other than for own use) or IFRS 9 are outside the scope of IFRS 2; conversely, share-based payment transactions fall within IFRS 2 and are excluded from IAS 32, with exceptions for certain contracts (IFRS 2, para. 6). Trap: Applying IFRS 2 to any payment made to employees or to any contract that can be settled net. Rule to remember: The boundary depends on the nature of the contract, not on the status of the counterparty (IFRS 2, para. 6).","es":""},"common_error":{"fr":"","en":"Applying IFRS 2 to any contract that can be settled net or to any payment made to employees.","es":""},"format":"MULTIPLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"IAS 32 applies to the expense recognised for an equity-settled employee option plan.","es":""},"correct":false,"feedback":{"fr":"","en":"The expense of an employee option plan falls within IFRS 2, not IAS 32, which excludes such transactions (IAS 32, para. 4). Rule to remember: The option plan is accounted for under IFRS 2.","es":""}},{"id":"B","text":{"fr":"","en":"Contracts within the scope of IFRS 9 also fall within IFRS 2 when they can be settled net in cash.","es":""},"correct":false,"feedback":{"fr":"","en":"Contracts governed by IFRS 9 are excluded from IFRS 2 and do not join its scope through net cash settlement (IFRS 2, para. 6). Rule to remember: A contract governed by IFRS 9 stays outside IFRS 2 (IFRS 2, para. 6).","es":""}},{"id":"C","text":{"fr":"","en":"Share-based payment transactions fall within IFRS 2 and are excluded from the scope of IAS 32, with exceptions for certain contracts.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"Any transaction concluded with an employee falls within IFRS 2, whether the payment is in shares, in cash or of another kind.","es":""},"correct":false,"feedback":{"fr":"","en":"Being an employee does not bring every transaction into IFRS 2: a payment unrelated to the entity's equity instruments falls outside IFRS 2. Rule to remember: The scope depends on the nature of the transaction, not on the status of the counterparty.","es":""}},{"id":"E","text":{"fr":"","en":"A contract to buy a non-financial item that can be settled net in cash and is not held for the entity's own use requirements follows IAS 32 and IFRS 9 and stays outside the scope of IFRS 2.","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS2.000012","standard_id":"IFRS2","concept_ids":["IFRS2.RECOGNITION.WHEN_RECEIVED"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IFRS2.000012","tested_point":"QST.IFRS2.000012","difficulty":"BEGINNER","source":"V1","format":"TRUE_FALSE","estimated_time_s":45,"lesson_id":null,"review":{"standard_id":"IFRS2","lesson_id":"LS.IFRS2.000002","section_id":"rule-expense-or-asset"},"references":["IFRS 2 §7"],"exercise":{"prompt":{"fr":"","en":"For an employee option plan settled in shares, the entity waits for the exercise date of the options to recognise the services received.","es":""},"explanation":{"fr":"","en":"Goods or services received are recognised when they are received; the counterpart is an increase in equity for an equity-settled transaction (IFRS 2, para. 7). Exercise of the options comes later and does not trigger recognition of the services. Trap: Deferring the expense of an award until exercise. Rule to remember: Services are recognised as they are received (IFRS 2, para. 7).","es":""},"common_error":{"fr":"","en":"Deferring the expense of an award until the options are exercised.","es":""},"format":"TRUE_FALSE","answer":false},"scope":"CORE_STUDENT"},{"key":"QST.IFRS2.000013","standard_id":"IFRS2","concept_ids":["IFRS2.RECOGNITION.WHEN_RECEIVED"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IFRS2.000013","tested_point":"QST.IFRS2.000013","difficulty":"BEGINNER","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":80,"lesson_id":null,"review":{"standard_id":"IFRS2","lesson_id":"LS.IFRS2.000002","section_id":"rule-expense-or-asset"},"references":["IFRS 2 §8","IFRS 2 §7"],"exercise":{"prompt":{"fr":"","en":"Nordis SA receives consulting services, paid for in options, that do not meet the recognition criteria for an asset. How does it account for them as they are received?","es":""},"explanation":{"fr":"","en":"Services received are recognised when they are received (IFRS 2, para. 7); if they do not meet the criteria for recognition as an asset, they are expensed (IFRS 2, para. 8). Because settlement is in equity instruments, the counterpart is an increase in equity. Trap: Debiting an asset for services that do not meet the criteria for an asset. Rule to remember: Expense on receipt, counterpart in equity for equity settlement (IFRS 2, paras. 7 and 8).","es":""},"common_error":{"fr":"","en":"Debiting an asset for services that do not meet the criteria for recognition as an asset.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"As an intangible asset, because payment is made in equity instruments.","es":""},"correct":false,"feedback":{"fr":"","en":"The method of payment does not create an asset: the service does not meet the recognition criteria for an asset and stays an expense (IFRS 2, para. 8). Rule to remember: A service that is not an asset is expensed (IFRS 2, para. 8).","es":""}},{"id":"B","text":{"fr":"","en":"As an expense at exercise of the options, when the shares are issued.","es":""},"correct":false,"feedback":{"fr":"","en":"Services are recognised when received, not at exercise: exercise comes after they are received (IFRS 2, para. 7). Rule to remember: The expense follows the receipt of the services (IFRS 2, para. 7).","es":""}},{"id":"C","text":{"fr":"","en":"As an expense, with a liability as counterpart, because the entity has undertaken to issue shares.","es":""},"correct":false,"feedback":{"fr":"","en":"The undertaking to issue shares is settled in equity instruments and not in cash: the counterpart is an increase in equity, not a liability (IFRS 2, para. 7). Rule to remember: Equity settlement, counterpart in equity (IFRS 2, para. 7).","es":""}},{"id":"D","text":{"fr":"","en":"As an expense, with a corresponding increase in equity.","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS2.000015","standard_id":"IFRS2","concept_ids":["IFRS2.RECOGNITION.EQUITY_VS_LIABILITY"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IFRS2.000015","tested_point":"QST.IFRS2.000015","difficulty":"BEGINNER","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":80,"lesson_id":null,"review":{"standard_id":"IFRS2","lesson_id":"LS.IFRS2.000002","section_id":"rule-credit"},"references":["IFRS 2 §7","IFRS 2 §30"],"exercise":{"prompt":{"fr":"","en":"What is the counterpart of the expense, on the one hand for an equity-settled option plan and on the other for a cash-settled share appreciation rights plan?","es":""},"explanation":{"fr":"","en":"The counterpart of the expense depends on the settlement method: an increase in equity for an equity-settled transaction (IFRS 2, para. 7), a liability for a cash-settled transaction (IFRS 2, para. 30). Trap: Crediting equity for a cash-settled plan, or a liability for an equity-settled plan. Rule to remember: The counterpart follows the settlement method (IFRS 2, paras. 7 and 30).","es":""},"common_error":{"fr":"","en":"Crediting equity for a cash-settled plan, or a liability for an equity-settled plan.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"A liability in the first case, an increase in equity in the second.","es":""},"correct":false,"feedback":{"fr":"","en":"The two counterparts are reversed: a liability corresponds to cash settlement and an increase in equity to equity settlement (IFRS 2, para. 7). Rule to remember: The counterpart follows the settlement method (IFRS 2, para. 7).","es":""}},{"id":"B","text":{"fr":"","en":"An increase in equity in the first case, a liability in the second.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"An increase in equity in both cases, the expense being a staff cost.","es":""},"correct":false,"feedback":{"fr":"","en":"The staff-cost nature of the expense does not determine the counterpart: the cash-settled plan creates a liability remeasured until settlement (IFRS 2, para. 30). Rule to remember: Cash settlement has a liability as its counterpart (IFRS 2, para. 30).","es":""}},{"id":"D","text":{"fr":"","en":"A liability in both cases, as long as the rights have not been exercised by the beneficiaries.","es":""},"correct":false,"feedback":{"fr":"","en":"The equity-settled plan creates no cash liability: its counterpart is an increase in equity (IFRS 2, para. 7). Rule to remember: Equity settlement, counterpart in equity (IFRS 2, para. 7).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS2.000016","standard_id":"IFRS2","concept_ids":["IFRS2.RECOGNITION.EQUITY_VS_LIABILITY"],"dimension":"ANALYSIS","context":"V1_QST.IFRS2.000016","tested_point":"QST.IFRS2.000016","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":100,"lesson_id":null,"review":{"standard_id":"IFRS2","lesson_id":"LS.IFRS2.000002","section_id":"rule-credit"},"references":["IFRS 2 §7"],"exercise":{"prompt":{"fr":"","en":"A trainee records the annual expense of an executive option plan, settled in shares, by crediting a liability account \"amounts owed to executives\". What is the error?","es":""},"explanation":{"fr":"","en":"For an equity-settled option plan, the expense has an increase in equity as its counterpart (IFRS 2, para. 7). Crediting a liability amounts to treating the plan as if it were cash-settled. Trap: Crediting a liability for an award of equity-settled options. Rule to remember: Equity settlement, counterpart in equity (IFRS 2, para. 7).","es":""},"common_error":{"fr":"","en":"Crediting a liability for an award of equity-settled options.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The expense should have been deferred until the options are exercised, when an amount becomes owed to the executives.","es":""},"correct":false,"feedback":{"fr":"","en":"The expense is recognised as services are received, not at exercise (IFRS 2, para. 7). The share-settled plan does not create an amount owed to executives at exercise. Rule to remember: Services are recognised when they are received (IFRS 2, para. 7).","es":""}},{"id":"B","text":{"fr":"","en":"The liability should have been remeasured at fair value at each closing, as for any plan, whatever its settlement method.","es":""},"correct":false,"feedback":{"fr":"","en":"Only a cash-settled plan gives a liability remeasured at each closing; here settlement is in shares and there is no liability to remeasure (IFRS 2, para. 7). Rule to remember: Remeasuring the liability concerns cash settlement (IFRS 2, para. 7).","es":""}},{"id":"C","text":{"fr":"","en":"The credit should have gone to income, the expense being offset by the value of the service received from the executives.","es":""},"correct":false,"feedback":{"fr":"","en":"A credit to income makes no sense: a service received generates no income, and its counterpart is an increase in equity (IFRS 2, para. 7). Rule to remember: No income for services received (IFRS 2, para. 7).","es":""}},{"id":"D","text":{"fr":"","en":"The counterpart of an equity-settled transaction is an increase in equity, not a liability.","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS2.000018","standard_id":"IFRS2","concept_ids":["IFRS2.MEASUREMENT.EMPLOYEES_GRANT_DATE_FV"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IFRS2.000018","tested_point":"QST.IFRS2.000018","difficulty":"BEGINNER","source":"V1","format":"TRUE_FALSE","estimated_time_s":45,"lesson_id":null,"review":{"standard_id":"IFRS2","lesson_id":"LS.IFRS2.000003","section_id":"understand"},"references":["IFRS 2 §11"],"exercise":{"prompt":{"fr":"","en":"Services received from employees in exchange for equity instruments are measured by reference to the fair value of the instruments granted, because the fair value of those services generally cannot be estimated reliably.","es":""},"explanation":{"fr":"","en":"For employees and similar parties, the fair value of the services received is measured by reference to the fair value of the equity instruments granted: it generally cannot be estimated reliably, because remuneration in instruments comes on top of salary and other benefits (IFRS 2, para. 11). Trap: Measuring employee services at their estimated market value rather than by the fair value of the instruments. Rule to remember: Employee services are measured by the fair value of the instruments granted (IFRS 2, para. 11).","es":""},"common_error":{"fr":"","en":"Measuring employee services at their estimated market value instead of the fair value of the instruments.","es":""},"format":"TRUE_FALSE","answer":true},"scope":"CORE_STUDENT"},{"key":"QST.IFRS2.000019","standard_id":"IFRS2","concept_ids":["IFRS2.MEASUREMENT.EMPLOYEES_GRANT_DATE_FV"],"dimension":"ANALYSIS","context":"V1_QST.IFRS2.000019","tested_point":"QST.IFRS2.000019","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":100,"lesson_id":null,"review":{"standard_id":"IFRS2","lesson_id":"LS.IFRS2.000003","section_id":"understand"},"references":["IFRS 2 §11","IFRS 2"],"exercise":{"prompt":{"fr":"","en":"A management controller writes: \"For our employee option plan, settled in shares, we measure the fair value of the options at each closing date and adjust the cumulative expense accordingly.\" What is the error?","es":""},"explanation":{"fr":"","en":"For employees, the fair value of the equity instruments granted is measured at the grant date (IFRS 2, para. 11; Appendix A). The controller remeasures it at each closing, as would be done for a cash-settled liability. Trap: Using the fair value at the closing date instead of the grant date for an equity-settled plan. Rule to remember: Measurement at the grant date (IFRS 2, para. 11).","es":""},"common_error":{"fr":"","en":"Using the fair value at the closing date instead of the grant date for an equity-settled plan.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The fair value should have been measured at the exercise date of the options, when their final value is known to the employees, and not at the plan's grant date.","es":""},"correct":false,"feedback":{"fr":"","en":"The exercise date comes after the grant and the vesting: using the value known at exercise would move the measurement to a date the standard has not set for these plans (IFRS 2, para. 11). Rule to remember: Measurement is at the grant date (IFRS 2, para. 11).","es":""}},{"id":"B","text":{"fr":"","en":"For an equity-settled plan, the fair value of the instruments is measured at the grant date, not at each closing date.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"The options should have been valued at intrinsic value at each closing date, without using a valuation model.","es":""},"correct":false,"feedback":{"fr":"","en":"An intrinsic value recomputed at each closing would amount to continuous remeasurement: the measurement is fixed at the grant date (IFRS 2, para. 11). Rule to remember: No remeasurement at each closing for equity settlement (IFRS 2, para. 11).","es":""}},{"id":"D","text":{"fr":"","en":"The fair value should have been measured at the date the year's accounts are finalised, the balance sheet reference date.","es":""},"correct":false,"feedback":{"fr":"","en":"The date the accounts are finalised serves to recognise the expense of the period, not to measure the fair value of the instruments granted (IFRS 2, para. 11). Rule to remember: Measurement date and closing date are not the same (IFRS 2, para. 11).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS2.000021","standard_id":"IFRS2","concept_ids":["IFRS2.MEASUREMENT.NON_EMPLOYEES_PRESUMPTION"],"dimension":"APPLICATION","context":"V1_QST.IFRS2.000021","tested_point":"QST.IFRS2.000021","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":130,"lesson_id":null,"review":{"standard_id":"IFRS2","lesson_id":"LS.IFRS2.000004","section_id":"rule-presumption"},"references":["IFRS 2 §13"],"exercise":{"prompt":{"fr":"","en":"Brisa SA settles in shares a firm of architects for plans delivered on dates spread over the year; the fair value of the plans delivered can be estimated reliably (case assumption). How does Brisa measure these services?","es":""},"explanation":{"fr":"","en":"For parties other than employees, the fair value of the goods or services received is presumed to be reliably estimable (a rebuttable presumption); it is measured at the date the entity obtains the goods or the counterparty renders the service, on each date of receipt if the services are spread (IFRS 2, para. 13). Trap: Systematically applying the fair value of the instruments to a supplier as for an employee. Rule to remember: Third parties: fair value of the services received, on each date of receipt (IFRS 2, para. 13).","es":""},"common_error":{"fr":"","en":"Systematically applying the fair value of the instruments to a supplier as for an employee.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"At the fair value of the shares issued, measured at the grant date, as for employees.","es":""},"correct":false,"feedback":{"fr":"","en":"Reference to the fair value of the instruments granted is the treatment for employees, or the fallback when the presumption is rebutted; it does not apply here (IFRS 2, para. 13). Rule to remember: For a third party, start from the fair value of the services received (IFRS 2, para. 13).","es":""}},{"id":"B","text":{"fr":"","en":"At the fair value of the shares issued, measured at the closing date of each year concerned.","es":""},"correct":false,"feedback":{"fr":"","en":"The closing-date fair value does not fix the measurement of a service received: it is made at the date the service is received (IFRS 2, para. 13). Rule to remember: Measurement at the date the service is rendered (IFRS 2, para. 13).","es":""}},{"id":"C","text":{"fr":"","en":"At the fair value of the services received, measured on each date the firm delivers its plans.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"At the nominal value of the shares issued, because the firm is not an employee.","es":""},"correct":false,"feedback":{"fr":"","en":"The nominal value of the shares plays no part in measuring the services: the test is the fair value of the services or, failing that, of the instruments (IFRS 2, para. 13). Rule to remember: Nominal value is never the measurement basis (IFRS 2, para. 13).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS2.000023","standard_id":"IFRS2","concept_ids":["IFRS2.MEASUREMENT.NO_REMEASUREMENT_AFTER_GRANT"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IFRS2.000023","tested_point":"QST.IFRS2.000023","difficulty":"INTERMEDIATE","source":"V1","format":"TRUE_FALSE","estimated_time_s":45,"lesson_id":null,"review":{"standard_id":"IFRS2","lesson_id":"LS.IFRS2.000003","section_id":"rule-no-remeasurement"},"references":["IFRS 2 §11"],"exercise":{"prompt":{"fr":"","en":"Lumen's share price has doubled since the grant of an equity-settled option plan; Lumen therefore remeasures the plan's reserve upwards at each closing, until exercise.","es":""},"explanation":{"fr":"","en":"The fair value of an equity-settled plan is measured at the grant date (IFRS 2, para. 11) and is not remeasured afterwards: the subsequent rise in the share price has no effect on the reserve. That is the difference with a cash-settled liability, remeasured at each closing. Trap: Remeasuring the reserve of the options at each closing as for a cash-settled plan. Rule to remember: No remeasurement of the reserve after the grant (IFRS 2, para. 11).","es":""},"common_error":{"fr":"","en":"Remeasuring the reserve of the options at each closing as for a cash-settled plan.","es":""},"format":"TRUE_FALSE","answer":false},"scope":"CORE_STUDENT"},{"key":"QST.IFRS2.000025","standard_id":"IFRS2","concept_ids":["IFRS2.MEASUREMENT.FAIR_VALUE_ESTIMATION"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IFRS2.000025","tested_point":"QST.IFRS2.000025","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":80,"lesson_id":null,"review":{"standard_id":"IFRS2","lesson_id":"LS.IFRS2.000004","section_id":"rule-model-inputs"},"references":["IFRS 2 §47"],"exercise":{"prompt":{"fr":"","en":"To measure the fair value of options granted to employees using a valuation model, which of these statements is correct?","es":""},"explanation":{"fr":"","en":"The entity discloses how the fair value was determined, including the inputs to the model used: expected volatility, option life, expected dividends, risk-free rate (IFRS 2, para. 47). These inputs result from a judgement of the entity and are not imposed values. Trap: Presenting a volatility or a life as imposed by the standard. Rule to remember: Inputs: an entity judgement, with disclosure (IFRS 2, para. 47).","es":""},"common_error":{"fr":"","en":"Presenting a volatility or a life as imposed by the standard.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The model inputs are a judgement of the entity, which discloses the ones it has used.","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"Expected volatility is imposed by the standard and is deduced from the share's historical volatility over the vesting period.","es":""},"correct":false,"feedback":{"fr":"","en":"The standard does not impose a volatility: it asks for disclosure of the expected volatility used, which results from a judgement of the entity (IFRS 2, para. 47). Rule to remember: An input is a judgement, not an imposed value (IFRS 2, para. 47).","es":""}},{"id":"C","text":{"fr":"","en":"The life used is the contractual term of the options, whatever exercise period the entity expects.","es":""},"correct":false,"feedback":{"fr":"","en":"The option life used in the model reflects expected exercise and is disclosed; it is not fixed by the contractual term (IFRS 2, para. 47). Rule to remember: The life is an input to be justified (IFRS 2, para. 47).","es":""}},{"id":"D","text":{"fr":"","en":"The risk-free rate is a single rate set by the IASB for all entities and for all grants.","es":""},"correct":false,"feedback":{"fr":"","en":"The risk-free rate is an input chosen by the entity for its model and disclosed by it; the IASB does not publish one for each grant (IFRS 2, para. 47). Rule to remember: Inputs are chosen and disclosed by the entity (IFRS 2, para. 47).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS2.000026","standard_id":"IFRS2","concept_ids":["IFRS2.VESTING.CONDITION_TYPES"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IFRS2.000026","tested_point":"QST.IFRS2.000026","difficulty":"BEGINNER","source":"V1","format":"MULTIPLE_CHOICE","estimated_time_s":120,"lesson_id":null,"review":{"standard_id":"IFRS2","lesson_id":"LS.IFRS2.000005","section_id":"rule-conditions"},"references":["IFRS 2","IFRS 2 §19","IFRS 2 §21A","IFRS 2 §21"],"exercise":{"prompt":{"fr":"","en":"Which statements about the conditions of an option plan are correct? More than one answer is possible.","es":""},"explanation":{"fr":"","en":"Vesting conditions comprise the service condition and the performance condition (market or non-market); service and non-market performance conditions are reflected in the number of instruments expected (IFRS 2, para. 19), market conditions and non-vesting conditions in the grant-date fair value (IFRS 2, paras. 21 and 21A; Appendix A). Trap: Treating an accounting profit target as a market condition. Rule to remember: Share price: fair value; service and non-market performance: number of instruments (IFRS 2, para. 19).","es":""},"common_error":{"fr":"","en":"Treating an accounting profit target as a market condition.","es":""},"format":"MULTIPLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Market conditions are reflected in the fair value of the instruments at the grant date.","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"Service conditions and non-market performance conditions are reflected in the number of instruments expected to vest.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"A non-vesting condition is treated as a service condition and adjusts the number of instruments.","es":""},"correct":false,"feedback":{"fr":"","en":"A non-vesting condition is reflected in the fair value, like a market condition, and not in the number of instruments (IFRS 2, para. 21A). Rule to remember: Non-vesting conditions follow the treatment of market conditions (IFRS 2, para. 21A).","es":""}},{"id":"D","text":{"fr":"","en":"A net profit target is a market condition, because it is measured on published figures.","es":""},"correct":false,"feedback":{"fr":"","en":"A net profit target is not linked to the share price: it is a non-market performance condition, which adjusts the number of instruments (IFRS 2, para. 19). Rule to remember: A link to the share price is what makes a market condition (IFRS 2, Appendix A).","es":""}},{"id":"E","text":{"fr":"","en":"A market condition is linked to the price of the entity's shares.","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS2.000027","standard_id":"IFRS2","concept_ids":["IFRS2.VESTING.CONDITION_TYPES"],"dimension":"APPLICATION","context":"V1_QST.IFRS2.000027","tested_point":"QST.IFRS2.000027","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":130,"lesson_id":null,"review":{"standard_id":"IFRS2","lesson_id":"LS.IFRS2.000005","section_id":"rule-conditions"},"references":["IFRS 2","IFRS 2 §19"],"exercise":{"prompt":{"fr":"","en":"Verano SA grants options to its executives under three conditions: (a) remain with the company for three years; (b) reach cumulative operating profit of EUR 12 million; (c) a share price of EUR 30 at the end of the three years. Which classification is correct?","es":""},"explanation":{"fr":"","en":"Three years of service is a service condition; cumulative operating profit is a non-market performance condition, since it does not depend on the share price; the target price is a market condition (IFRS 2, para. 19; Appendix A). The first two act on the number of options expected to vest; the third is in the fair value. Trap: Treating an accounting profit target as a market condition. Rule to remember: Only the share price makes a market condition (IFRS 2, Appendix A).","es":""},"common_error":{"fr":"","en":"Treating an accounting profit target as a market condition.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"(a) service condition; (b) non-market performance condition; (c) market performance condition.","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"(a) service condition; (b) market performance condition, because it is quantified; (c) non-market condition.","es":""},"correct":false,"feedback":{"fr":"","en":"A target being quantified does not make it a market condition: a condition is one of market only if linked to the share price, which is the case of (c), not of (b) (IFRS 2, Appendix A). Rule to remember: Market condition = linked to the share price (IFRS 2, Appendix A).","es":""}},{"id":"C","text":{"fr":"","en":"(a) and (b) service conditions, because they depend on the business; (c) market performance condition.","es":""},"correct":false,"feedback":{"fr":"","en":"An operating profit target is not a service condition: it measures the entity's performance and not the length of service (IFRS 2, para. 19). Rule to remember: Service = length of service; performance = a result to reach (IFRS 2, para. 19).","es":""}},{"id":"D","text":{"fr":"","en":"(a) service condition; (b) and (c) market performance conditions, because both are quantified targets.","es":""},"correct":false,"feedback":{"fr":"","en":"The operating profit target (b) is not linked to the share price: it remains a non-market performance condition (IFRS 2, Appendix A). Rule to remember: An accounting target is not a market condition (IFRS 2, Appendix A).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS2.000029","standard_id":"IFRS2","concept_ids":["IFRS2.VESTING.VESTING_PERIOD_ATTRIBUTION"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IFRS2.000029","tested_point":"QST.IFRS2.000029","difficulty":"BEGINNER","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":80,"lesson_id":null,"review":{"standard_id":"IFRS2","lesson_id":"LS.IFRS2.000005","section_id":"rule-vesting-period"},"references":["IFRS 2 §15","IFRS 2"],"exercise":{"prompt":{"fr":"","en":"Options granted to employees vest only after three years of service. How does the entity account for the services received?","es":""},"explanation":{"fr":"","en":"When the instruments vest only after a specified period of service, the entity presumes that the services will be received during the vesting period and recognises them as they are rendered, with a corresponding increase in equity (IFRS 2, para. 15). The vesting period runs from the grant date to the date the conditions are met (IFRS 2, Appendix A). Trap: Recognising the whole fair value in the first year or spreading over the life of the options. Rule to remember: Spreading over the vesting period (IFRS 2, para. 15).","es":""},"common_error":{"fr":"","en":"Recognising the whole fair value in the first year instead of spreading it over the vesting period.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"In full at the grant date, because the fair value of the options is fixed on that date and the grant is final.","es":""},"correct":false,"feedback":{"fr":"","en":"The grant date fixes the fair value, not the time services are received: these are rendered during the vesting period (IFRS 2, para. 15). Rule to remember: The expense is spread over the vesting period (IFRS 2, para. 15).","es":""}},{"id":"B","text":{"fr":"","en":"As they are rendered during the vesting period, with a corresponding increase in equity.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"In full at the end of the three years, when the vesting conditions are finally met, with no spreading over the earlier years.","es":""},"correct":false,"feedback":{"fr":"","en":"The services are received during the three years and are recognised as they are received; waiting for the end of the period would postpone the whole expense (IFRS 2, para. 15). Rule to remember: Recognition as the services are rendered (IFRS 2, para. 15).","es":""}},{"id":"D","text":{"fr":"","en":"Over the contractual life of the options, including after the rights have vested for the employees concerned.","es":""},"correct":false,"feedback":{"fr":"","en":"The period over which the expense is spread is the vesting period, which ends when the conditions are met, not the life of the options (IFRS 2, Appendix A). Rule to remember: Spreading over the vesting period (IFRS 2, para. 15).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS2.000030","standard_id":"IFRS2","concept_ids":["IFRS2.VESTING.VESTING_PERIOD_ATTRIBUTION"],"dimension":"CALCULATION","context":"V1_QST.IFRS2.000030","tested_point":"QST.IFRS2.000030","difficulty":"INTERMEDIATE","source":"V1","format":"NUMERICAL","estimated_time_s":200,"lesson_id":null,"review":{"standard_id":"IFRS2","lesson_id":"LS.IFRS2.000005","section_id":"rule-vesting-period"},"references":["IFRS 2 §15","IFRS 2"],"exercise":{"prompt":{"fr":"","en":"Lumen SA has granted options that vest after five years of service. The expected total cost of the plan, the grant-date fair value multiplied by the number of options expected to vest, is {total_expected_cost} (case data). Case convention: services are received evenly, and two years out of five have elapsed, i.e. {elapsed_share} of the vesting period. Compute the cumulative expense at the closing date.","es":""},"explanation":{"fr":"","en":"Method: 750,000 × 40% = 300,000. Services are recognised as they are rendered during the vesting period (IFRS 2, para. 15): the cumulative expense is the elapsed share of the expected total cost. Even spreading is a case convention, not a method imposed by the standard. Trap: Recognising the whole fair value in the first year instead of spreading it. Rule to remember: Cumulative expense = expected total cost × elapsed share of the vesting period (IFRS 2, para. 15).","es":""},"common_error":{"fr":"","en":"Recognising the whole fair value in the first year, or spreading it over the life of the options.","es":""},"format":"CALCULATION","placeholders":[{"id":"total_expected_cost","value":"750000","unit":"EUR"},{"id":"elapsed_share","value":"40","unit":"PERCENT"}],"data":[{"label":{"fr":"","en":"Expected total cost of the plan (case data)","es":""},"value":"750000","unit":"EUR"},{"label":{"fr":"","en":"Elapsed share of the vesting period (case convention)","es":""},"value":"40","unit":"PERCENT"}],"steps":[{"id":"CUMULATIVE_EXPENSE","label":{"fr":"","en":"Cumulative expense at the closing date","es":""},"answer":300000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"CUMULATIVE_EXPENSE","meaning":{"fr":"","en":"Cumulative expense at the closing date","es":""},"expression":"a * b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Expected total cost of the plan (case data)","es":""},"value":750000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Elapsed share of the vesting period (case convention)","es":""},"value":40,"unit":"PERCENT"}],"result":300000,"unit":"EUR"}],"rationale":{"fr":"","en":"Cumulative expense = expected total cost × elapsed share of the vesting period (IFRS 2, para. 15).","es":""},"references":["REF.IFRS2.15"]}},"scope":"CORE_STUDENT"},{"key":"QST.IFRS2.000032","standard_id":"IFRS2","concept_ids":["IFRS2.VESTING.TRUE_UP_NON_MARKET"],"dimension":"RULE_KNOWLEDGE","context":"V1_VG.IFRS2.000001","tested_point":"VG.IFRS2.000001","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":80,"lesson_id":null,"review":{"standard_id":"IFRS2","lesson_id":"LS.IFRS2.000006","section_id":"rule-true-up"},"references":["IFRS 2 §19","IFRS 2 §20"],"exercise":{"prompt":{"fr":"","en":"An option plan has a three-year service condition. At the end of year two, the entity revises downwards, because of more departures than expected, the number of options it expects to vest. How does it treat this revision?","es":""},"explanation":{"fr":"","en":"Service conditions and non-market performance conditions are reflected in the number of instruments included in the measurement: the entity uses its best estimate of the number expected and revises it if new information requires, which gives a cumulative catch-up (IFRS 2, paras. 19 and 20). The unit fair value at the grant date does not change. Trap: Applying the revision of the expected number to future periods only. Rule to remember: Revision of the expected number = cumulative catch-up in profit or loss (IFRS 2, paras. 19 and 20).","es":""},"common_error":{"fr":"","en":"Applying the revision of the expected number to future periods only.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"It applies the new number to the periods to come and leaves the expense already recognised unchanged.","es":""},"correct":false,"feedback":{"fr":"","en":"A revision of the expected number does not apply to future periods alone: the cumulative expense is recomputed and the difference goes through the period of the revision (IFRS 2, paras. 19 and 20). Rule to remember: The expected number gives rise to a cumulative catch-up (IFRS 2, paras. 19 and 20).","es":""}},{"id":"B","text":{"fr":"","en":"It recomputes the cumulative expense with the revised expected number and recognises the difference in profit or loss.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"It treats the revision as a modification of the plan and measures a benefit at the revision date.","es":""},"correct":false,"feedback":{"fr":"","en":"A revision of the expected number is not a modification of the terms of the plan: no benefit is measured, only the cumulative expense is recomputed (IFRS 2, paras. 19 and 20). Rule to remember: A revised estimate, not a modification (IFRS 2, paras. 19 and 20).","es":""}},{"id":"D","text":{"fr":"","en":"It reverses in profit or loss all the expense already recognised, the service condition no longer being met for the plan.","es":""},"correct":false,"feedback":{"fr":"","en":"Departures reduce the number of options expected to vest without making the plan fail for the remaining beneficiaries: the cumulative expense is recomputed, not reversed in full (IFRS 2, paras. 19 and 20). Rule to remember: Only the options that will not vest leave the expense (IFRS 2, paras. 19 and 20).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS2.000033","standard_id":"IFRS2","concept_ids":["IFRS2.VESTING.TRUE_UP_NON_MARKET"],"dimension":"CALCULATION","context":"V1_QST.IFRS2.000033","tested_point":"QST.IFRS2.000033","difficulty":"ADVANCED","source":"V1","format":"NUMERICAL","estimated_time_s":200,"lesson_id":null,"review":{"standard_id":"IFRS2","lesson_id":"LS.IFRS2.000006","section_id":"rule-true-up"},"references":["IFRS 2 §19","IFRS 2 §20"],"exercise":{"prompt":{"fr":"","en":"Helia SA has granted options with a four-year service condition. At the end of year one, the cumulative expense recognised is {cumulative_expense_previous}. At the end of year two, the entity revises the number of options it expects to vest: the expected total cost becomes {total_expected_cost_revised} (case data; the grant-date fair value is unchanged). Case convention: the elapsed share of the vesting period is {elapsed_share}. Compute the cumulative expense at the end of year two and the expense for that year.","es":""},"explanation":{"fr":"","en":"Method: 720,000 × 50% = 360,000 of cumulative expense; 360,000 − 200,000 = 160,000 of expense for the year. The revision of the expected number is a cumulative catch-up: the cumulative expense is recomputed with the new expected cost, and the difference from the expense already recognised goes through the period (IFRS 2, paras. 19 and 20). The unit fair value at the grant date stays unchanged. Trap: Not going back to the original fair value but recomputing it at the closing date. Rule to remember: Expense for the period = revised cumulative expense − expense already recognised (IFRS 2, paras. 19 and 20).","es":""},"common_error":{"fr":"","en":"Recomputing the unit fair value at the closing date instead of revising the number of options expected.","es":""},"format":"CALCULATION","placeholders":[{"id":"total_expected_cost_revised","value":"720000","unit":"EUR"},{"id":"elapsed_share","value":"50","unit":"PERCENT"},{"id":"cumulative_expense_previous","value":"200000","unit":"EUR"}],"data":[{"label":{"fr":"","en":"Expected total cost after revision (case data)","es":""},"value":"720000","unit":"EUR"},{"label":{"fr":"","en":"Elapsed share of the vesting period (case convention)","es":""},"value":"50","unit":"PERCENT"},{"label":{"fr":"","en":"Cumulative expense at the end of year one","es":""},"value":"200000","unit":"EUR"}],"steps":[{"id":"CUMULATIVE_EXPENSE_CLOSING","label":{"fr":"","en":"Cumulative expense at the end of year two","es":""},"answer":360000,"tolerance":0,"unit":"EUR"},{"id":"PERIOD_EXPENSE","label":{"fr":"","en":"Expense for year two","es":""},"answer":160000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"CUMULATIVE_EXPENSE_CLOSING","meaning":{"fr":"","en":"Cumulative expense at the end of year two","es":""},"expression":"a * b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Expected total cost after revision (case data)","es":""},"value":720000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Elapsed share of the vesting period (case convention)","es":""},"value":50,"unit":"PERCENT"}],"result":360000,"unit":"EUR"},{"step":"PERIOD_EXPENSE","meaning":{"fr":"","en":"Expense for year two","es":""},"expression":"a - b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Cumulative expense at the end of year two","es":""},"value":360000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Cumulative expense at the end of year one","es":""},"value":200000,"unit":"EUR"}],"result":160000,"unit":"EUR"}],"rationale":{"fr":"","en":"Expense for the period = revised cumulative expense − expense already recognised (IFRS 2, paras. 19 and 20).","es":""},"references":["REF.IFRS2.19","REF.IFRS2.20"]}},"scope":"CORE_STUDENT"},{"key":"QST.IFRS2.000034","standard_id":"IFRS2","concept_ids":["IFRS2.VESTING.TRUE_UP_NON_MARKET"],"dimension":"ANALYSIS","context":"V1_VG.IFRS2.000001","tested_point":"VG.IFRS2.000001","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":100,"lesson_id":null,"review":{"standard_id":"IFRS2","lesson_id":"LS.IFRS2.000006","section_id":"rule-true-up"},"references":["IFRS 2 §19","IFRS 2 §20"],"exercise":{"prompt":{"fr":"","en":"A colleague writes: \"At the N2 closing we revised downwards the number of options expected. This revision applies to future periods only: the N1 expense already recognised stays unchanged.\" What is the error?","es":""},"explanation":{"fr":"","en":"The best estimate of the number of instruments expected to vest is revised if new information requires, and the cumulative expense is recomputed: the difference from the expense already recognised is a cumulative catch-up, recognised in the period (IFRS 2, paras. 19 and 20). Trap: Applying the revision of the expected number to future periods only. Rule to remember: Revision of the expected number = cumulative catch-up (IFRS 2, paras. 19 and 20).","es":""},"common_error":{"fr":"","en":"Applying the revision of the expected number to future periods only.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The revision gives rise to a cumulative catch-up: the cumulative expense is recomputed and the difference goes to profit or loss.","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"He forgets to recompute the unit fair value of the options at the N2 closing, which must reflect the new expected number.","es":""},"correct":false,"feedback":{"fr":"","en":"The unit fair value at the grant date is not recomputed; only the expected quantity is revised (IFRS 2, paras. 19 and 20). Rule to remember: The revision concerns the number, not the unit fair value (IFRS 2, paras. 19 and 20).","es":""}},{"id":"C","text":{"fr":"","en":"He charges the revision directly to equity, without taking it through the profit or loss of the periods concerned.","es":""},"correct":false,"feedback":{"fr":"","en":"The colleague charges nothing to equity: his error is to limit the revision to future periods, whereas the difference goes through the period of the revision (IFRS 2, paras. 19 and 20). Rule to remember: The cumulative catch-up goes through profit or loss (IFRS 2, paras. 19 and 20).","es":""}},{"id":"D","text":{"fr":"","en":"He forgets that the revision of the expected number applies from the time employees exercise the options.","es":""},"correct":false,"feedback":{"fr":"","en":"The revision takes place at each closing, as long as new information requires it; exercise of the options is not its starting point (IFRS 2, paras. 19 and 20). Rule to remember: The expected number is revised at each closing (IFRS 2, paras. 19 and 20).","es":""}}]},"scope":"CORE_STUDENT","reserve":true},{"key":"QST.IFRS2.000035","standard_id":"IFRS2","concept_ids":["IFRS2.VESTING.MARKET_AND_NON_VESTING_NO_TRUE_UP"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IFRS2.000035","tested_point":"QST.IFRS2.000035","difficulty":"INTERMEDIATE","source":"V1","format":"TRUE_FALSE","estimated_time_s":45,"lesson_id":null,"review":{"standard_id":"IFRS2","lesson_id":"LS.IFRS2.000005","section_id":"rule-no-true-up"},"references":["IFRS 2 §21"],"exercise":{"prompt":{"fr":"","en":"An option plan is subject to a target share price and to three years of service. The employees stay three years, but the target price is not reached; the entity then reverses the cumulative expense recognised.","es":""},"explanation":{"fr":"","en":"A market condition, such as a target price, is taken into account in the grant-date fair value; the expense is recognised for the instruments whose other vesting conditions are met, whether or not the market condition is met (IFRS 2, para. 21). Here the three years of service are rendered: the expense stays recognised. Trap: Reversing the cumulative expense when the target price is not reached. Rule to remember: No reversal for failure of a market condition (IFRS 2, para. 21).","es":""},"common_error":{"fr":"","en":"Reversing the cumulative expense when the target price is not reached.","es":""},"format":"TRUE_FALSE","answer":false},"scope":"CORE_STUDENT"},{"key":"QST.IFRS2.000036","standard_id":"IFRS2","concept_ids":["IFRS2.VESTING.MARKET_AND_NON_VESTING_NO_TRUE_UP"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IFRS2.000036","tested_point":"QST.IFRS2.000036","difficulty":"INTERMEDIATE","source":"V1","format":"MULTIPLE_CHOICE","estimated_time_s":120,"lesson_id":null,"review":{"standard_id":"IFRS2","lesson_id":"LS.IFRS2.000005","section_id":"rule-no-true-up"},"references":["IFRS 2 §21","IFRS 2 §21A"],"exercise":{"prompt":{"fr":"","en":"Which statements about market conditions and non-vesting conditions are correct? More than one answer is possible.","es":""},"explanation":{"fr":"","en":"The market condition and the non-vesting condition are reflected in the grant-date fair value: the expense is recognised for the instruments whose other conditions are met, with no later adjustment linked to those conditions, unless a cancellation is identified (IFRS 2, paras. 21 and 21A). By contrast, failure of a service or non-market performance condition changes the number of instruments that vest. Trap: Reversing the cumulative expense when the target price is not reached, or keeping it when the employee leaves. Rule to remember: Market: no later adjustment; service: adjustment of the number (IFRS 2, para. 21).","es":""},"common_error":{"fr":"","en":"Not reversing the cumulative expense when the employee leaves before the end of the service, or reversing it when the target price is not reached.","es":""},"format":"MULTIPLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Failure of a service condition leaves the expense in place, as for a market condition.","es":""},"correct":false,"feedback":{"fr":"","en":"Failure of a service condition changes the number of instruments that vest and the cumulative expense is adjusted; it is not left in place as for a market condition (IFRS 2, para. 21). Rule to remember: An employee leaving adjusts the expense, missing the target price does not (IFRS 2, para. 21).","es":""}},{"id":"B","text":{"fr":"","en":"A market condition is taken into account in the estimate of the grant-date fair value.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"The expense linked to a market condition is adjusted at each closing according to the probability of reaching the target price.","es":""},"correct":false,"feedback":{"fr":"","en":"The market condition is already in the grant-date fair value: the expense is not readjusted at each closing according to the probability of reaching the price (IFRS 2, para. 21). Rule to remember: No later adjustment because of the market condition (IFRS 2, para. 21).","es":""}},{"id":"D","text":{"fr":"","en":"When the other vesting conditions are met, the expense is recognised whether or not the market condition is met.","es":""},"correct":true},{"id":"E","text":{"fr":"","en":"Failure of a non-vesting condition leads to no adjustment of the expense, unless a cancellation is identified.","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS2.000037","standard_id":"IFRS2","concept_ids":["IFRS2.VESTING.MARKET_AND_NON_VESTING_NO_TRUE_UP","IFRS2.VESTING.CONDITION_TYPES"],"dimension":"APPLICATION","context":"V1_QST.IFRS2.000037","tested_point":"QST.IFRS2.000037","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":130,"lesson_id":null,"review":{"standard_id":"IFRS2","lesson_id":"LS.IFRS2.000005","section_id":"rule-conditions"},"references":["IFRS 2 §21","IFRS 2 §19"],"exercise":{"prompt":{"fr":"","en":"Alba SA granted an executive two tranches of options. Tranche 1: three years of service and a target cumulative operating profit. Tranche 2: three years of service and a target share price. The executive stays three years; at the end of the period, the target profit is not reached (tranche 1) and the target price is not reached (tranche 2). What is the effect on the cumulative expense of each tranche?","es":""},"explanation":{"fr":"","en":"Tranche 1: the non-market performance condition is not met, so the options do not vest and the cumulative expense is adjusted (IFRS 2, para. 19). Tranche 2: the market condition is already in the grant-date fair value and the expense is kept since the service is rendered (IFRS 2, para. 21). Trap: Reversing the cumulative expense when the target price is not reached. Rule to remember: Non-market: adjustment of the number; market: no adjustment (IFRS 2, paras. 19 and 21).","es":""},"common_error":{"fr":"","en":"Reversing the cumulative expense when the target price is not reached.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Tranches 1 and 2: cumulative expense reversed, because the targets set by the agreement are not reached for both tranches.","es":""},"correct":false,"feedback":{"fr":"","en":"The two tranches are not treated alike: only the non-market condition of tranche 1 adjusts the expense, the market condition of tranche 2 being already in the fair value (IFRS 2, para. 21). Rule to remember: Market and non-market conditions have different effects (IFRS 2, paras. 19 and 21).","es":""}},{"id":"B","text":{"fr":"","en":"Tranche 1: cumulative expense reversed, as the options do not vest; tranche 2: cumulative expense kept, the market condition being in the fair value.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"Tranches 1 and 2: cumulative expense kept, because the executive stayed three years and rendered all the expected services.","es":""},"correct":false,"feedback":{"fr":"","en":"Service rendered is not enough for tranche 1: the unmet non-market performance condition means the options do not vest and the expense is adjusted (IFRS 2, para. 19). Rule to remember: An unmet non-market performance condition adjusts the number (IFRS 2, para. 19).","es":""}},{"id":"D","text":{"fr":"","en":"Tranche 1: cumulative expense kept, because the service is rendered; tranche 2: cumulative expense reversed, because the target price is missed, the market condition being an ordinary vesting condition.","es":""},"correct":false,"feedback":{"fr":"","en":"The treatments are reversed: the expense is reversed for the non-market target, not for the target price, a market condition with no later adjustment (IFRS 2, para. 21). Rule to remember: The target price does not lead to a reversal (IFRS 2, para. 21).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS2.000038","standard_id":"IFRS2","concept_ids":["IFRS2.VESTING.EXPENSE_CALCULATION"],"dimension":"CALCULATION","context":"V1_QST.IFRS2.000038","tested_point":"QST.IFRS2.000038","difficulty":"INTERMEDIATE","source":"V1","format":"NUMERICAL","estimated_time_s":200,"lesson_id":null,"review":{"standard_id":"IFRS2","lesson_id":"LS.IFRS2.000006","section_id":"how-schedule"},"references":["IFRS 2 §19","IFRS 2 §15"],"exercise":{"prompt":{"fr":"","en":"Alba SA granted 100 employees 500 options each, with a four-year service condition; the fair value of one option at the grant date is EUR 8, i.e. {grant_cost_all_options} for all the options granted. At the end of year two, the entity expects {expected_vest_percent} of the options to vest. Case convention: the elapsed share of the vesting period is {elapsed_share}. Compute the expected total cost, then the cumulative expense at the closing date.","es":""},"explanation":{"fr":"","en":"Method: 400,000 × 90% = 360,000 of expected total cost; 360,000 × 50% = 180,000 of cumulative expense. The service condition is reflected in the number of options expected to vest, not in the unit fair value (IFRS 2, para. 19), and the expense is spread over the vesting period (IFRS 2, para. 15). The 400,000 starting point is 100 × 500 × 8. Trap: Applying the number of instruments granted instead of the number expected at the closing date. Rule to remember: Cumulative expense = fair value × number expected × elapsed share (IFRS 2, para. 19).","es":""},"common_error":{"fr":"","en":"Applying the number of instruments granted instead of the number expected at the closing date.","es":""},"format":"CALCULATION","placeholders":[{"id":"grant_cost_all_options","value":"400000","unit":"EUR"},{"id":"expected_vest_percent","value":"90","unit":"PERCENT"},{"id":"elapsed_share","value":"50","unit":"PERCENT"}],"data":[{"label":{"fr":"","en":"Fair value of all the options granted","es":""},"value":"400000","unit":"EUR"},{"label":{"fr":"","en":"Share of the options expected to vest","es":""},"value":"90","unit":"PERCENT"},{"label":{"fr":"","en":"Elapsed share of the vesting period (case convention)","es":""},"value":"50","unit":"PERCENT"}],"steps":[{"id":"EXPECTED_TOTAL_COST","label":{"fr":"","en":"Expected total cost","es":""},"answer":360000,"tolerance":0,"unit":"EUR"},{"id":"CUMULATIVE_EXPENSE","label":{"fr":"","en":"Cumulative expense at the closing date","es":""},"answer":180000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"EXPECTED_TOTAL_COST","meaning":{"fr":"","en":"Expected total cost","es":""},"expression":"a * b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Fair value of all the options granted","es":""},"value":400000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Share of the options expected to vest","es":""},"value":90,"unit":"PERCENT"}],"result":360000,"unit":"EUR"},{"step":"CUMULATIVE_EXPENSE","meaning":{"fr":"","en":"Cumulative expense at the closing date","es":""},"expression":"a * b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Expected total cost","es":""},"value":360000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Elapsed share of the vesting period (case convention)","es":""},"value":50,"unit":"PERCENT"}],"result":180000,"unit":"EUR"}],"rationale":{"fr":"","en":"Cumulative expense = fair value × number expected × elapsed share (IFRS 2, para. 19).","es":""},"references":["REF.IFRS2.19","REF.IFRS2.15"]}},"scope":"CORE_STUDENT"},{"key":"QST.IFRS2.000039","standard_id":"IFRS2","concept_ids":["IFRS2.VESTING.EXPENSE_CALCULATION"],"dimension":"ANALYSIS","context":"V1_QST.IFRS2.000039","tested_point":"QST.IFRS2.000039","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":100,"lesson_id":null,"review":{"standard_id":"IFRS2","lesson_id":"LS.IFRS2.000006","section_id":"how-schedule"},"references":["IFRS 2 §19","IFRS 2 §15"],"exercise":{"prompt":{"fr":"","en":"An analyst computes the cumulative expense at the end of year three of a four-year plan using the fair value of all the options granted: 600,000 × 75% = 450,000. The entity nevertheless expects only 80% of the options to vest. What is the error?","es":""},"explanation":{"fr":"","en":"The cumulative expense equals the grant-date fair value, multiplied by the number of options expected to vest, then by the elapsed share of the vesting period (IFRS 2, paras. 19 and 15). The analyst applies 100% of the options granted instead of the 80% expected: 450,000 instead of 360,000. Trap: Applying the number of instruments granted instead of the number expected at the closing date. Rule to remember: Cumulative expense = fair value × number expected × elapsed share (IFRS 2, para. 19).","es":""},"common_error":{"fr":"","en":"Applying the number of instruments granted instead of the number expected at the closing date.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"She should use the fair value of the options at the end of the third year, and not that of the plan's grant date.","es":""},"correct":false,"feedback":{"fr":"","en":"The grant-date fair value remains the basis of an equity-settled plan; the closing-date fair value is not used (IFRS 2, para. 19). Rule to remember: The unit fair value does not change, the expected number does (IFRS 2, para. 19).","es":""}},{"id":"B","text":{"fr":"","en":"She should spread the expense over the contractual life of the options, and not over the four years of the plan's vesting period.","es":""},"correct":false,"feedback":{"fr":"","en":"The expense is spread over the four-year vesting period, not over the contractual life of the options (IFRS 2, para. 15). Rule to remember: Spreading over the vesting period (IFRS 2, para. 15).","es":""}},{"id":"C","text":{"fr":"","en":"She should deduct the first-year expense before applying the elapsed share to the options granted.","es":""},"correct":false,"feedback":{"fr":"","en":"The first-year expense is deducted after computing the cumulative expense to obtain the expense for the period; it is not what is missing in the analyst's computation, whose base is already wrong (IFRS 2, para. 19). Rule to remember: The base of the cumulative expense is the expected number (IFRS 2, para. 19).","es":""}},{"id":"D","text":{"fr":"","en":"She applies the number of options granted and not the number of options expected to vest at the closing date.","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS2.000041","standard_id":"IFRS2","concept_ids":["IFRS2.MODIFICATION.BENEFICIAL"],"dimension":"CALCULATION","context":"V1_QST.IFRS2.000041","tested_point":"QST.IFRS2.000041","difficulty":"ADVANCED","source":"V1","format":"NUMERICAL","estimated_time_s":200,"lesson_id":null,"review":{"standard_id":"IFRS2","lesson_id":"LS.IFRS2.000007","section_id":"rule-beneficial"},"references":["IFRS 2 §26","IFRS 2 §27"],"exercise":{"prompt":{"fr":"","en":"Verano SA lowers the exercise price of its executives' options, which benefits them, two years before the end of the vesting period. At the modification date, the fair value of all the modified options is {fair_value_modified_total} and that of the original options is {fair_value_original_total} (case data, measured at the same date). Case convention: the difference is recognised evenly over the remaining period, of which {elapsed_share_remaining} has elapsed at the closing date. Compute the incremental fair value, then the cumulative additional expense at the closing date, on top of the original expense.","es":""},"explanation":{"fr":"","en":"Method: 54,000 − 36,000 = 18,000 of incremental fair value; 18,000 × 50% = 9,000 of cumulative additional expense. After a beneficial modification, the entity recognises at least the expense measured at the grant-date fair value of the original instruments, and in addition the effect of the modification (IFRS 2, paras. 26 and 27). Both fair values are estimated at the modification date, as the application guidance referred to in para. 27 requires; even spreading is a case calculation convention. Trap: Measuring the fair value difference at the grant date instead of the modification date. Rule to remember: Beneficial modification: original expense kept, plus the effect of the modification (IFRS 2, paras. 26 and 27).","es":""},"common_error":{"fr":"","en":"Measuring the fair value difference at the grant date instead of the modification date.","es":""},"format":"CALCULATION","placeholders":[{"id":"fair_value_modified_total","value":"54000","unit":"EUR"},{"id":"fair_value_original_total","value":"36000","unit":"EUR"},{"id":"elapsed_share_remaining","value":"50","unit":"PERCENT"}],"data":[{"label":{"fr":"","en":"Fair value of the modified options at the modification date (case data)","es":""},"value":"54000","unit":"EUR"},{"label":{"fr":"","en":"Fair value of the original options at the modification date (case data)","es":""},"value":"36000","unit":"EUR"},{"label":{"fr":"","en":"Elapsed share of the remaining period (case convention)","es":""},"value":"50","unit":"PERCENT"}],"steps":[{"id":"INCREMENTAL_FAIR_VALUE","label":{"fr":"","en":"Incremental fair value","es":""},"answer":18000,"tolerance":0,"unit":"EUR"},{"id":"INCREMENTAL_COST","label":{"fr":"","en":"Cumulative additional expense at the closing date","es":""},"answer":9000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"INCREMENTAL_FAIR_VALUE","meaning":{"fr":"","en":"Incremental fair value","es":""},"expression":"a - b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Fair value of the modified options at the modification date (case data)","es":""},"value":54000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Fair value of the original options at the modification date (case data)","es":""},"value":36000,"unit":"EUR"}],"result":18000,"unit":"EUR"},{"step":"INCREMENTAL_COST","meaning":{"fr":"","en":"Cumulative additional expense at the closing date","es":""},"expression":"a * b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Incremental fair value","es":""},"value":18000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Elapsed share of the remaining period (case convention)","es":""},"value":50,"unit":"PERCENT"}],"result":9000,"unit":"EUR"}],"rationale":{"fr":"","en":"Beneficial modification: original expense kept, plus the effect of the modification (IFRS 2, paras. 26 and 27).","es":""},"references":["REF.IFRS2.26","REF.IFRS2.27"]}},"scope":"CORE_STUDENT"},{"key":"QST.IFRS2.000042","standard_id":"IFRS2","concept_ids":["IFRS2.MODIFICATION.BENEFICIAL"],"dimension":"ANALYSIS","context":"V1_QST.IFRS2.000042","tested_point":"QST.IFRS2.000042","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":100,"lesson_id":null,"review":{"standard_id":"IFRS2","lesson_id":"LS.IFRS2.000007","section_id":"rule-beneficial"},"references":["IFRS 2 §26","IFRS 2 §27"],"exercise":{"prompt":{"fr":"","en":"A trainee writes: \"After the cut in the exercise price, which benefits the executives, we keep recognising the expense computed at the grant date and add nothing: the modification has no effect on profit.\" What is the error?","es":""},"explanation":{"fr":"","en":"When a modification increases the total fair value or is otherwise beneficial to the counterparty, the entity recognises at least the expense measured at the grant-date fair value and, in addition, the effect of the modification (IFRS 2, para. 27). The trainee recognises the original expense alone. Trap: Ignoring the effect of a beneficial modification, or measuring it at the grant date. Rule to remember: Original expense plus the effect of the beneficial modification (IFRS 2, para. 27).","es":""},"common_error":{"fr":"","en":"Measuring the fair value difference at the grant date instead of the modification date, or ignoring it.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"He omits to recognise, on top of the original expense, the effect of the modification, which increases the fair value or is otherwise beneficial to the counterparty.","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"He should replace the original expense with the fair value of the modified options, recognised from the modification date, without keeping the expense measured at the grant date.","es":""},"correct":false,"feedback":{"fr":"","en":"The original expense is not replaced: it is kept and supplemented by the effect of the modification (IFRS 2, para. 27). Rule to remember: Original expense plus the effect of the beneficial modification (IFRS 2, para. 27).","es":""}},{"id":"C","text":{"fr":"","en":"He should recognise the effect of the modification directly in equity, without taking it to profit or loss.","es":""},"correct":false,"feedback":{"fr":"","en":"The effect of the modification is a cost of services received, recognised like the original expense with a counterpart in equity, not an amount taken to equity with no expense (IFRS 2, para. 27). Rule to remember: The effect of the modification is an expense (IFRS 2, para. 27).","es":""}},{"id":"D","text":{"fr":"","en":"He should reverse part of the original expense, since the lower exercise price reduces the cost for the executives.","es":""},"correct":false,"feedback":{"fr":"","en":"A lower exercise price benefits the executives: it increases the value and does not lighten the original expense, which is kept (IFRS 2, para. 27). Rule to remember: A beneficial modification leads to no reversal (IFRS 2, para. 27).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS2.000043","standard_id":"IFRS2","concept_ids":["IFRS2.MODIFICATION.NON_BENEFICIAL"],"dimension":"APPLICATION","context":"V1_QST.IFRS2.000043","tested_point":"QST.IFRS2.000043","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":130,"lesson_id":null,"review":{"standard_id":"IFRS2","lesson_id":"LS.IFRS2.000007","section_id":"rule-non-beneficial"},"references":["IFRS 2 §27","IFRS 2 §26"],"exercise":{"prompt":{"fr":"","en":"Orsay SA raises the exercise price of options granted to its executives with three years of service, which is unfavourable to them; the fair value of all the options falls by 10,000 at the modification date. The total grant-date fair value of the original options was 120,000 (case data). What is the effect on the expense?","es":""},"explanation":{"fr":"","en":"After a modification, the entity recognises at least the services received measured at the grant-date fair value of the original instruments, unless they fail to vest because of a vesting condition specified at the outset (IFRS 2, para. 27). For an unfavourable modification the minimum amount is therefore kept: the fall of 10,000 has no effect on the 120,000 expense to be spread. Trap: Reducing the expense because the terms become less favourable. Rule to remember: Minimum expense kept after an unfavourable modification (IFRS 2, para. 27).","es":""},"common_error":{"fr":"","en":"Reducing the expense because the terms become less favourable.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The expense is reduced by the fall in fair value of 10,000, because the terms have become less favourable for the executives.","es":""},"correct":false,"feedback":{"fr":"","en":"The minimum amount rules out a reduction of the expense because of an unfavourable modification: the fall of 10,000 does not lighten the original expense (IFRS 2, para. 27). Rule to remember: An unfavourable modification does not reduce the minimum expense (IFRS 2, para. 27).","es":""}},{"id":"B","text":{"fr":"","en":"The options are remeasured at the modification date and the cumulative expense is recomputed on that new fair value basis, disregarding the fair value of the original options.","es":""},"correct":false,"feedback":{"fr":"","en":"The basis remains the grant-date fair value of the original instruments; there is no new measurement of the expense at the modification date (IFRS 2, para. 27). Rule to remember: No remeasurement at the modification date for the minimum amount (IFRS 2, para. 27).","es":""}},{"id":"C","text":{"fr":"","en":"The expense continues to be recognised at least on the basis of the grant-date fair value of the original options, with no reduction because of the modification.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"The original expense is reversed in full, the modification being equivalent to a cancellation of the initial plan.","es":""},"correct":false,"feedback":{"fr":"","en":"An unfavourable modification does not remove the original expense: it is kept at least, unless an original vesting condition fails (IFRS 2, para. 27). Rule to remember: No reversal because of the modification alone (IFRS 2, para. 27).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS2.000044","standard_id":"IFRS2","concept_ids":["IFRS2.MODIFICATION.CANCELLATION_SETTLEMENT"],"dimension":"CALCULATION","context":"V1_QST.IFRS2.000044","tested_point":"QST.IFRS2.000044","difficulty":"INTERMEDIATE","source":"V1","format":"NUMERICAL","estimated_time_s":200,"lesson_id":null,"review":{"standard_id":"IFRS2","lesson_id":"LS.IFRS2.000007","section_id":"rule-cancellation"},"references":["IFRS 2 §28"],"exercise":{"prompt":{"fr":"","en":"Nordis SA cancels, during the vesting period, an equity-settled option plan, with no replacement instrument and no payment to the executives. The total cost of the plan at the grant date was {total_grant_date_cost} (case data) and the cumulative expense recognised up to the cancellation is {cumulative_expense_recognised}. Compute the expense to be recognised immediately at the cancellation date.","es":""},"explanation":{"fr":"","en":"Method: 750,000 − 270,000 = 480,000. On a cancellation during the vesting period, the entity immediately recognises the amount that would have been recognised for the remaining services (IFRS 2, para. 28). The expense already recognised is not reversed: the balance of the cost is added to it. Trap: Reversing the expense already recognised on a cancellation by the entity. Rule to remember: Cancellation during the vesting period: the remaining expense is accelerated (IFRS 2, para. 28).","es":""},"common_error":{"fr":"","en":"Reversing the expense already recognised on a cancellation by the entity.","es":""},"format":"CALCULATION","placeholders":[{"id":"total_grant_date_cost","value":"750000","unit":"EUR"},{"id":"cumulative_expense_recognised","value":"270000","unit":"EUR"}],"data":[{"label":{"fr":"","en":"Total cost of the plan at the grant date (case data)","es":""},"value":"750000","unit":"EUR"},{"label":{"fr":"","en":"Cumulative expense already recognised","es":""},"value":"270000","unit":"EUR"}],"steps":[{"id":"ACCELERATED_EXPENSE","label":{"fr":"","en":"Expense accelerated at the cancellation","es":""},"answer":480000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"ACCELERATED_EXPENSE","meaning":{"fr":"","en":"Expense accelerated at the cancellation","es":""},"expression":"a - b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Total cost of the plan at the grant date (case data)","es":""},"value":750000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Cumulative expense already recognised","es":""},"value":270000,"unit":"EUR"}],"result":480000,"unit":"EUR"}],"rationale":{"fr":"","en":"Cancellation during the vesting period: the remaining expense is accelerated (IFRS 2, para. 28).","es":""},"references":["REF.IFRS2.28"]}},"scope":"CORE_STUDENT"},{"key":"QST.IFRS2.000046","standard_id":"IFRS2","concept_ids":["IFRS2.CASH_SETTLED.LIABILITY_MEASUREMENT"],"dimension":"RULE_KNOWLEDGE","context":"V1_VG.IFRS2.000002","tested_point":"VG.IFRS2.000002","difficulty":"BEGINNER","source":"V1","format":"TRUE_FALSE","estimated_time_s":45,"lesson_id":null,"review":{"standard_id":"IFRS2","lesson_id":"LS.IFRS2.000008","section_id":"rule-liability"},"references":["IFRS 2 §30"],"exercise":{"prompt":{"fr":"","en":"For a cash-settled transaction, the fair value of the liability is remeasured at each closing date and at the settlement date, the changes being recognised in profit or loss for the period.","es":""},"explanation":{"fr":"","en":"For a cash-settled transaction, the entity measures the goods or services received and the liability incurred at the fair value of the liability; until settlement, that fair value is remeasured at each closing date and at the settlement date, and the changes are recognised in profit or loss for the period (IFRS 2, para. 30). That is the difference with an equity-settled transaction, whose fair value is fixed at the grant date. Trap: Fixing the fair value at the grant date for a cash-settled share appreciation rights plan. Rule to remember: Liability remeasured at each closing, changes in profit or loss (IFRS 2, para. 30).","es":""},"common_error":{"fr":"","en":"Fixing the fair value at the grant date for a cash-settled share appreciation rights plan.","es":""},"format":"TRUE_FALSE","answer":true},"scope":"CORE_STUDENT"},{"key":"QST.IFRS2.000047","standard_id":"IFRS2","concept_ids":["IFRS2.CASH_SETTLED.LIABILITY_MEASUREMENT"],"dimension":"CALCULATION","context":"V1_QST.IFRS2.000047","tested_point":"QST.IFRS2.000047","difficulty":"INTERMEDIATE","source":"V1","format":"NUMERICAL","estimated_time_s":200,"lesson_id":null,"review":{"standard_id":"IFRS2","lesson_id":"LS.IFRS2.000008","section_id":"rule-liability"},"references":["IFRS 2 §30"],"exercise":{"prompt":{"fr":"","en":"Brisa SA has granted its executives share appreciation rights settled in cash, with a four-year service condition. At the end of year two, the total fair value of the rights expected to vest, measured at that date, is {total_expected_fair_value} (case data). Case convention: the elapsed share of the vesting period is {elapsed_share}. The liability recognised at the previous closing is {liability_previous} and no cash has yet been paid. Compute the liability at the closing date, then the expense for the year.","es":""},"explanation":{"fr":"","en":"Method: 560,000 × 50% = 280,000 of liability at the closing date; 280,000 − 110,000 = 170,000 of expense for the year, no cash having been paid. The liability is measured at the fair value of the liability, remeasured at each closing, with the changes in profit or loss (IFRS 2, para. 30); the total fair value is that of the closing date, not of the grant date. Trap: Fixing the fair value at the grant date. Rule to remember: Liability = closing fair value × vested share; expense = change in the liability (IFRS 2, para. 30).","es":""},"common_error":{"fr":"","en":"Computing the expense of the year with the grant-date fair value instead of the closing-date one.","es":""},"format":"CALCULATION","placeholders":[{"id":"total_expected_fair_value","value":"560000","unit":"EUR"},{"id":"elapsed_share","value":"50","unit":"PERCENT"},{"id":"liability_previous","value":"110000","unit":"EUR"}],"data":[{"label":{"fr":"","en":"Total fair value of the rights expected, at the closing date (case data)","es":""},"value":"560000","unit":"EUR"},{"label":{"fr":"","en":"Elapsed share of the vesting period (case convention)","es":""},"value":"50","unit":"PERCENT"},{"label":{"fr":"","en":"Liability recognised at the previous closing","es":""},"value":"110000","unit":"EUR"}],"steps":[{"id":"LIABILITY_CLOSING","label":{"fr":"","en":"Liability at the closing date","es":""},"answer":280000,"tolerance":0,"unit":"EUR"},{"id":"PERIOD_CHARGE","label":{"fr":"","en":"Expense for the year","es":""},"answer":170000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"LIABILITY_CLOSING","meaning":{"fr":"","en":"Liability at the closing date","es":""},"expression":"a * b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Total fair value of the rights expected, at the closing date (case data)","es":""},"value":560000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Elapsed share of the vesting period (case convention)","es":""},"value":50,"unit":"PERCENT"}],"result":280000,"unit":"EUR"},{"step":"PERIOD_CHARGE","meaning":{"fr":"","en":"Expense for the year","es":""},"expression":"a - b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Liability at the closing date","es":""},"value":280000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Liability recognised at the previous closing","es":""},"value":110000,"unit":"EUR"}],"result":170000,"unit":"EUR"}],"rationale":{"fr":"","en":"Liability = closing fair value × vested share; expense = change in the liability (IFRS 2, para. 30).","es":""},"references":["REF.IFRS2.30"]}},"scope":"CORE_STUDENT"},{"key":"QST.IFRS2.000048","standard_id":"IFRS2","concept_ids":["IFRS2.CASH_SETTLED.LIABILITY_MEASUREMENT"],"dimension":"ANALYSIS","context":"V1_VG.IFRS2.000002","tested_point":"VG.IFRS2.000002","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":100,"lesson_id":null,"review":{"standard_id":"IFRS2","lesson_id":"LS.IFRS2.000008","section_id":"rule-liability"},"references":["IFRS 2 §30"],"exercise":{"prompt":{"fr":"","en":"A controller writes: \"Our share appreciation rights are settled in cash; we measured the liability at the grant-date fair value and will not adjust it again.\" What is the error?","es":""},"explanation":{"fr":"","en":"For a cash-settled transaction, the fair value of the liability is remeasured at each closing date and at the settlement date, and the changes are recognised in profit or loss (IFRS 2, para. 30). Freezing the liability at the grant-date fair value amounts to treating it like the reserve of a share-settled plan. Trap: Fixing the fair value at the grant date for a cash-settled share appreciation rights plan. Rule to remember: Liability remeasured at each closing, changes in profit or loss (IFRS 2, para. 30).","es":""},"common_error":{"fr":"","en":"Fixing the fair value at the grant date for a cash-settled share appreciation rights plan.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The liability should have been measured at the date the cash is paid to the beneficiaries, and not at the grant date.","es":""},"correct":false,"feedback":{"fr":"","en":"The payment date also enters the remeasurement, but does not replace the measurements at each closing: the liability is remeasured at each closing date until settlement (IFRS 2, para. 30). Rule to remember: Remeasurement at each closing and at settlement (IFRS 2, para. 30).","es":""}},{"id":"B","text":{"fr":"","en":"The liability should have been replaced by a reserve in equity, measured at the fair value of the grant date.","es":""},"correct":false,"feedback":{"fr":"","en":"A reserve in equity corresponds to equity settlement; here, cash settlement creates a liability (IFRS 2, para. 30). Rule to remember: Cash settlement, remeasured liability (IFRS 2, para. 30).","es":""}},{"id":"C","text":{"fr":"","en":"The liability is remeasured at each closing and at the settlement date, the changes going to profit or loss.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"The changes in the fair value of the liability should have been taken to equity rather than to profit or loss for the year, like the other reserve items of the group.","es":""},"correct":false,"feedback":{"fr":"","en":"Changes in the fair value of the liability are recognised in profit or loss for the period, not in equity (IFRS 2, para. 30). Rule to remember: Changes in the liability in profit or loss (IFRS 2, para. 30).","es":""}}]},"scope":"CORE_STUDENT","reserve":true},{"key":"QST.IFRS2.000049","standard_id":"IFRS2","concept_ids":["IFRS2.ALTERNATIVES.PRESENT_OBLIGATION_TEST"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IFRS2.000049","tested_point":"QST.IFRS2.000049","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":80,"lesson_id":null,"review":{"standard_id":"IFRS2","lesson_id":"LS.IFRS2.000009","section_id":"rule-present-obligation"},"references":["IFRS 2 §34"],"exercise":{"prompt":{"fr":"","en":"In a transaction with a settlement alternative, how does the entity account for it?","es":""},"explanation":{"fr":"","en":"For a transaction with a settlement alternative, the entity accounts for the transaction, or each of its components, as cash-settled to the extent that it has incurred a liability to settle in cash or other assets, and as equity-settled to the extent that it has not incurred such a liability (IFRS 2, para. 34). Trap: Concluding there is no obligation because the plan does not formally require cash, without examining the entity's commitments. Rule to remember: Cash-settled to the extent of the liability incurred (IFRS 2, para. 34).","es":""},"common_error":{"fr":"","en":"Concluding there is no obligation because the plan does not formally require cash.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"As cash-settled to the extent that it has incurred a settlement liability, and as equity-settled to the extent that it has not incurred such a liability.","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"As equity-settled until settlement takes place, then reclassified as cash-settled when the beneficiaries are actually paid, with no other test.","es":""},"correct":false,"feedback":{"fr":"","en":"The classification does not depend on actual payment: it rests on whether the entity has incurred a cash settlement liability (IFRS 2, para. 34). A later payment does not flip the classification. Rule to remember: The test is the liability incurred, not the payment (IFRS 2, para. 34).","es":""}},{"id":"C","text":{"fr":"","en":"As cash-settled as soon as the plan mentions the possibility of cash settlement, even when the entity has committed to no payment.","es":""},"correct":false,"feedback":{"fr":"","en":"Merely mentioning a possibility of cash settlement is not enough: the entity must also have incurred a settlement liability (IFRS 2, para. 34). Rule to remember: A liability incurred is needed for cash-settled classification (IFRS 2, para. 34).","es":""}},{"id":"D","text":{"fr":"","en":"According to the entity's presentation choice, either accounting being allowed for the same transaction with a settlement alternative.","es":""},"correct":false,"feedback":{"fr":"","en":"The classification is not a presentation choice: it results from the test of the liability incurred, applied to the transaction or its components (IFRS 2, para. 34). Rule to remember: The classification follows from the facts, not from a preference (IFRS 2, para. 34).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS2.000051","standard_id":"IFRS2","concept_ids":["IFRS2.ALTERNATIVES.COUNTERPARTY_CHOICE_COMPOUND"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IFRS2.000051","tested_point":"QST.IFRS2.000051","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":80,"lesson_id":null,"review":{"standard_id":"IFRS2","lesson_id":"LS.IFRS2.000009","section_id":"rule-counterparty"},"references":["IFRS 2 §35"],"exercise":{"prompt":{"fr":"","en":"A plan gives each employee, at vesting, the choice between a sum in cash and a number of shares of the entity. How is the award classified?","es":""},"explanation":{"fr":"","en":"When the counterparty may choose the settlement method, the entity has issued a compound financial instrument: the counterparty's right to demand cash is the liability component, its right to demand equity instruments the equity component (IFRS 2, para. 35). Trap: Classifying the whole award as a liability because a cash option exists. Rule to remember: Counterparty choice: compound instrument, two components (IFRS 2, para. 35).","es":""},"common_error":{"fr":"","en":"Classifying the whole award as a liability because a cash option exists.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"As cash-settled in full, because the existence of a cash choice creates a liability for the whole award.","es":""},"correct":false,"feedback":{"fr":"","en":"The employee's right to cash creates a liability, but it does not cover the whole award: the right to shares is a separate equity component (IFRS 2, para. 35). Rule to remember: Two components, not a single liability (IFRS 2, para. 35).","es":""}},{"id":"B","text":{"fr":"","en":"As equity-settled in full, because the employee may in the end choose to receive shares.","es":""},"correct":false,"feedback":{"fr":"","en":"The employee's right to demand cash is a liability component, even though he may also ask for shares: the award is not classified entirely in equity (IFRS 2, para. 35). Rule to remember: The right to cash is a liability component (IFRS 2, para. 35).","es":""}},{"id":"C","text":{"fr":"","en":"As equity-settled until the choice is exercised, then reclassified as a liability if the employee opts for cash.","es":""},"correct":false,"feedback":{"fr":"","en":"The split into two components applies from the time the choice is granted and does not wait for the employee to exercise it (IFRS 2, para. 35). Rule to remember: Components distinguished without waiting for the exercise of the choice (IFRS 2, para. 35).","es":""}},{"id":"D","text":{"fr":"","en":"As a compound financial instrument: the right to cash is the liability component, the right to shares the equity component.","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS2.000052","standard_id":"IFRS2","concept_ids":["IFRS2.ALTERNATIVES.COUNTERPARTY_CHOICE_COMPOUND"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IFRS2.000052","tested_point":"QST.IFRS2.000052","difficulty":"ADVANCED","source":"V1","format":"MULTIPLE_CHOICE","estimated_time_s":120,"lesson_id":null,"review":{"standard_id":"IFRS2","lesson_id":"LS.IFRS2.000009","section_id":"rule-counterparty"},"references":["IFRS 2 §35"],"exercise":{"prompt":{"fr":"","en":"An employee may choose between cash and shares when the award vests. Which statements are correct? More than one answer is possible.","es":""},"explanation":{"fr":"","en":"When the counterparty chooses, the entity has issued a compound financial instrument: the right to cash is the liability component, the right to equity instruments the equity component (IFRS 2, para. 35); the goods or services are then accounted for separately for each component. Both components exist from the grant. Trap: Classifying the whole award as a liability because a cash option exists. Rule to remember: Counterparty choice: two components accounted for separately (IFRS 2, para. 35).","es":""},"common_error":{"fr":"","en":"Classifying the whole award as a liability because a cash option exists.","es":""},"format":"MULTIPLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The employee's choice is analysed as a settlement alternative of the entity, with no separate component to recognise.","es":""},"correct":false,"feedback":{"fr":"","en":"When the counterparty chooses, the entity has issued a compound instrument; this is not the entity's settlement alternative, which follows another test (IFRS 2, para. 35). Rule to remember: Counterparty choice and entity choice are two distinct situations (IFRS 2, para. 35).","es":""}},{"id":"B","text":{"fr":"","en":"The choice given to the counterparty does not make the award a cash-settled transaction for the whole of it.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"The entity accounts separately for the goods or services received for each of the two components.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"The equity component exists from the time the employee chooses to receive shares.","es":""},"correct":false,"feedback":{"fr":"","en":"The right to demand shares is an equity component from the issue of the compound instrument, not from the time the employee chooses (IFRS 2, para. 35). Rule to remember: The equity component exists from the grant (IFRS 2, para. 35).","es":""}},{"id":"E","text":{"fr":"","en":"The liability component corresponds to the employee's right to demand cash.","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS2.000053","standard_id":"IFRS2","concept_ids":["IFRS2.ALTERNATIVES.ENTITY_CHOICE"],"dimension":"APPLICATION","context":"V1_QST.IFRS2.000053","tested_point":"QST.IFRS2.000053","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":130,"lesson_id":null,"review":{"standard_id":"IFRS2","lesson_id":"LS.IFRS2.000009","section_id":"rule-present-obligation"},"references":["IFRS 2 §41"],"exercise":{"prompt":{"fr":"","en":"Lumen SA has a plan settled, at vesting, either by delivering shares or by paying an equivalent amount in cash, at Lumen's choice. No commitment, practice or communication obliges Lumen to settle in cash (case facts). How does it classify the award?","es":""},"explanation":{"fr":"","en":"When the entity may choose the settlement method, it determines whether it has a present obligation to settle in cash: if so, the transaction is accounted for as cash-settled, otherwise as equity-settled (IFRS 2, para. 41). The case facts exclude any obligation. Trap: Classifying an award as cash-settled because the entity could pay in cash. Rule to remember: Entity choice: cash-settled only if there is a present obligation (IFRS 2, para. 41).","es":""},"common_error":{"fr":"","en":"Classifying an award as cash-settled because the entity could pay in cash.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"As cash-settled, because the value of the award follows Lumen's share price.","es":""},"correct":false,"feedback":{"fr":"","en":"Sensitivity of the value to the share price does not decide the classification: the test is the existence of a present obligation to settle in cash (IFRS 2, para. 41). Rule to remember: The test is the present obligation (IFRS 2, para. 41).","es":""}},{"id":"B","text":{"fr":"","en":"As equity-settled, in the absence of a present obligation to settle in cash.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"As cash-settled, because Lumen keeps the ability to pay in cash at vesting.","es":""},"correct":false,"feedback":{"fr":"","en":"The mere ability to pay in cash is not an obligation: without a commitment, cash settlement remains the entity's choice (IFRS 2, para. 41). Rule to remember: An ability is not an obligation (IFRS 2, para. 41).","es":""}},{"id":"D","text":{"fr":"","en":"As a compound instrument, with a liability component and an equity component measured separately.","es":""},"correct":false,"feedback":{"fr":"","en":"The compound instrument corresponds to the counterparty's choice; here the entity chooses, and the present obligation test applies (IFRS 2, para. 41). Rule to remember: Entity choice: present obligation test (IFRS 2, para. 41).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS2.000055","standard_id":"IFRS2","concept_ids":["IFRS2.GROUP.RECEIVING_ENTITY"],"dimension":"APPLICATION","context":"V1_QST.IFRS2.000055","tested_point":"QST.IFRS2.000055","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":130,"lesson_id":null,"review":{"standard_id":"IFRS2","lesson_id":"LS.IFRS2.000010","section_id":"rule-receiving-entity"},"references":["IFRS 2 §43A"],"exercise":{"prompt":{"fr":"","en":"Mère SA grants options over Mère's shares to employees of its subsidiary Fille SA, which Mère will deliver itself. Fille receives the services of those employees, with no obligation to deliver securities or to pay (case facts). How does Fille treat the award in its separate financial statements?","es":""},"explanation":{"fr":"","en":"In its separate financial statements, the entity receiving the goods or services measures the transaction as equity-settled or cash-settled by assessing the nature of the award and its own rights and obligations; the amount may differ from that of the consolidated group or of another group entity that settles (IFRS 2, para. 43A). Trap: Taking over in the subsidiary the classification used in the consolidated accounts. Rule to remember: Classification by the nature of the award and the rights and obligations of the receiving entity (IFRS 2, para. 43A).","es":""},"common_error":{"fr":"","en":"Taking over in the subsidiary the classification used in the consolidated accounts.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"It assesses the nature of the award and its own rights and obligations; the amount recognised may differ from that of the consolidated group.","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"It takes over the classification and amount used in the group's consolidated financial statements, with no assessment of its own.","es":""},"correct":false,"feedback":{"fr":"","en":"Taking over the consolidated classification ignores the rule: the subsidiary assesses its own situation, and its amount may differ from the group's (IFRS 2, para. 43A). Rule to remember: The subsidiary does not mechanically take over the group's classification (IFRS 2, para. 43A).","es":""}},{"id":"C","text":{"fr":"","en":"It recognises nothing, the award being a matter for the parent and not for the subsidiary that receives the services, since the group forms a single economic entity.","es":""},"correct":false,"feedback":{"fr":"","en":"Fille does receive services: the entity receiving the goods or services accounts for them in its own statements, even if another entity settles (IFRS 2, para. 43A). Rule to remember: Whoever receives the services accounts for them (IFRS 2, para. 43A).","es":""}},{"id":"D","text":{"fr":"","en":"It follows the settlement method used by the parent in its own accounts, without examining its own obligations.","es":""},"correct":false,"feedback":{"fr":"","en":"The classification depends on the rights and obligations of the entity receiving the services, not on what the parent decides in its accounts (IFRS 2, para. 43A). Rule to remember: Assess its own rights and obligations (IFRS 2, para. 43A).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS2.000056","standard_id":"IFRS2","concept_ids":["IFRS2.GROUP.PARENT_GRANT_TO_SUBSIDIARY_EMPLOYEES"],"dimension":"APPLICATION","context":"V1_QST.IFRS2.000056","tested_point":"QST.IFRS2.000056","difficulty":"EXPERT","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":130,"lesson_id":null,"review":{"standard_id":"IFRS2","lesson_id":"LS.IFRS2.000010","section_id":"rule-parent-grant"},"references":["IFRS 2 §43A","IFRS 2 §43B"],"exercise":{"prompt":{"fr":"","en":"Mère SA directly grants options over Mère's shares to employees of its subsidiary Fille SA. Fille bears the payroll cost of these employees and records the expense of the options in its accounts. Who bears the obligation to deliver the instruments to the employees?","es":""},"explanation":{"fr":"","en":"When the parent grants its instruments directly to the employees of a subsidiary, it is the parent that has the obligation to deliver them (IFRS 2); Fille, which has no obligation to settle, measures the services received as an equity-settled transaction (IFRS 2, para. 43B). The fact that the subsidiary benefits from the services and records the expense does not make it bear the obligation to deliver. Trap: Assigning to the subsidiary the obligation to deliver the parent's shares. Rule to remember: The obligation to deliver falls on the parent that grants its instruments (IFRS 2).","es":""},"common_error":{"fr":"","en":"Assigning to the subsidiary the obligation to deliver the parent's shares.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Fille, because it benefits from the services rendered by its employees and therefore bears their cost.","es":""},"correct":false,"feedback":{"fr":"","en":"Benefiting from the services does not create the obligation to deliver: it falls on the entity that granted its own instruments, here Mère (IFRS 2). Rule to remember: Whoever grants its instruments must deliver them (IFRS 2).","es":""}},{"id":"B","text":{"fr":"","en":"Mère, which granted its own instruments directly to the employees and has the obligation to deliver them.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"The employees themselves, who must acquire the shares from Mère before they can exercise their options.","es":""},"correct":false,"feedback":{"fr":"","en":"The employees are the beneficiaries of the award and do not bear the obligation to deliver: the entity granting its instruments delivers them (IFRS 2). Rule to remember: Beneficiaries do not deliver (IFRS 2).","es":""}},{"id":"D","text":{"fr":"","en":"Mère and Fille, the obligation to deliver being split in proportion to the cost of services borne by each.","es":""},"correct":false,"feedback":{"fr":"","en":"Nothing in the case shares the obligation: Mère granted its own instruments and the obligation to deliver falls on Mère (IFRS 2). Rule to remember: No sharing without a commitment by the subsidiary (IFRS 2).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS2.000057","standard_id":"IFRS2","concept_ids":["IFRS2.AMENDMENTS.CASH_VESTING_CONDITIONS","IFRS2.CASH_SETTLED.LIABILITY_MEASUREMENT"],"dimension":"ANALYSIS","context":"V1_QST.IFRS2.000057","tested_point":"QST.IFRS2.000057","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":100,"lesson_id":null,"review":{"standard_id":"IFRS2","lesson_id":"LS.IFRS2.000008","section_id":"rule-liability"},"references":["IFRS 2","IFRS 2 §30"],"exercise":{"prompt":{"fr":"","en":"For cash-settled share appreciation rights with a three-year service condition, a controller allows for the expected leavers by reducing the unit fair value of each right. What is the error?","es":""},"explanation":{"fr":"","en":"Since the June 2016 amendment, the measurement of the liability of a cash-settled transaction follows the same approach as for equity-settled transactions: market conditions and non-vesting conditions are in the fair value of the liability, service and non-market performance conditions in the number of instruments expected to vest (IFRS 2, para. 30; 2016 amendment). Trap: Building the service condition into the fair value of the liability instead of adjusting it through the number of instruments expected. Rule to remember: Service and non-market performance: number expected (IFRS 2, para. 30; 2016 amendment).","es":""},"common_error":{"fr":"","en":"Building the service condition into the fair value of the liability instead of adjusting it through the number of instruments expected.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Market conditions should, conversely, have been dealt with by adjusting the number of rights expected to vest.","es":""},"correct":false,"feedback":{"fr":"","en":"The controller does not deal with a market condition: his error is to have put the service condition into the unit fair value, whereas only market conditions belong there (2016 amendment). Rule to remember: Market: fair value; service: number expected (2016 amendment; IFRS 2, para. 30).","es":""}},{"id":"B","text":{"fr":"","en":"The liability should have been measured at the grant date and no longer remeasured, as for an equity-settled plan.","es":""},"correct":false,"feedback":{"fr":"","en":"The liability of a cash-settled plan is still remeasured at each closing; the controller did not freeze the value, his error concerns the treatment of the service condition (IFRS 2, para. 30). Rule to remember: The liability is remeasured, the service condition adjusts the number (IFRS 2, para. 30).","es":""}},{"id":"C","text":{"fr":"","en":"The liability should have ignored the service condition, as it is not, in the controller's view, a vesting condition of the rights.","es":""},"correct":false,"feedback":{"fr":"","en":"The service condition is a vesting condition: it is adjusted through the number of rights expected, not ignored (2016 amendment; IFRS 2, para. 30). Rule to remember: Service condition: number expected (2016 amendment).","es":""}},{"id":"D","text":{"fr":"","en":"The service condition applies to the number of rights expected, not to the unit fair value of the liability.","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS2.000058","standard_id":"IFRS2","concept_ids":["IFRS2.AMENDMENTS.CASH_VESTING_CONDITIONS","IFRS2.CASH_SETTLED.LIABILITY_MEASUREMENT"],"dimension":"CALCULATION","context":"V1_QST.IFRS2.000058","tested_point":"QST.IFRS2.000058","difficulty":"ADVANCED","source":"V1","format":"NUMERICAL","estimated_time_s":200,"lesson_id":null,"review":{"standard_id":"IFRS2","lesson_id":"LS.IFRS2.000008","section_id":"rule-liability"},"references":["IFRS 2","IFRS 2 §30"],"exercise":{"prompt":{"fr":"","en":"Helia SA has granted cash-settled share appreciation rights, with a four-year service condition. At the end of year three, the fair value of all the rights granted, measured at that date and ignoring the service condition, is {fair_value_all_rights} (case data). The entity expects {expected_vest_percent} of the rights to vest; case convention: the elapsed share of the vesting period is {elapsed_share}. The 2016 amendment applies to annual periods beginning on or after 1 January 2018. Compute the fair value of the rights expected to vest, then the liability at the closing date.","es":""},"explanation":{"fr":"","en":"Method: 500,000 × 80% = 400,000 of fair value of the rights expected; 400,000 × 75% = 300,000 of liability at the closing date. The service condition is adjusted through the number of rights expected to vest, not through the fair value of the right (IFRS 2, paras. 33A and 33B, introduced by the 2016 amendment), and the liability is remeasured at each closing. Trap: Building the service condition into the fair value of the liability instead of adjusting it through the number of instruments expected. Rule to remember: Liability = closing fair value × share expected × elapsed share (IFRS 2, paras. 30 and 33A to 33D).","es":""},"common_error":{"fr":"","en":"Reducing the unit fair value of the rights for expected leavers instead of adjusting the number of rights.","es":""},"format":"CALCULATION","placeholders":[{"id":"fair_value_all_rights","value":"500000","unit":"EUR"},{"id":"expected_vest_percent","value":"80","unit":"PERCENT"},{"id":"elapsed_share","value":"75","unit":"PERCENT"}],"data":[{"label":{"fr":"","en":"Fair value of all the rights granted, at the closing date (case data)","es":""},"value":"500000","unit":"EUR"},{"label":{"fr":"","en":"Share of the rights expected to vest","es":""},"value":"80","unit":"PERCENT"},{"label":{"fr":"","en":"Elapsed share of the vesting period (case convention)","es":""},"value":"75","unit":"PERCENT"}],"steps":[{"id":"EXPECTED_FAIR_VALUE","label":{"fr":"","en":"Fair value of the rights expected to vest","es":""},"answer":400000,"tolerance":0,"unit":"EUR"},{"id":"LIABILITY_CLOSING","label":{"fr":"","en":"Liability at the closing date","es":""},"answer":300000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"EXPECTED_FAIR_VALUE","meaning":{"fr":"","en":"Fair value of the rights expected to vest","es":""},"expression":"a * b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Fair value of all the rights granted, at the closing date (case data)","es":""},"value":500000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Share of the rights expected to vest","es":""},"value":80,"unit":"PERCENT"}],"result":400000,"unit":"EUR"},{"step":"LIABILITY_CLOSING","meaning":{"fr":"","en":"Liability at the closing date","es":""},"expression":"a * b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Fair value of the rights expected to vest","es":""},"value":400000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Elapsed share of the vesting period (case convention)","es":""},"value":75,"unit":"PERCENT"}],"result":300000,"unit":"EUR"}],"rationale":{"fr":"","en":"Liability = closing fair value × share expected × elapsed share (IFRS 2, paras. 30 and 33A to 33D).","es":""},"references":["REF.IFRS2.30","REF.IFRS2.AMD2016.CASHVESTING"]}},"scope":"CORE_STUDENT"},{"key":"QST.IFRS2.000059","standard_id":"IFRS2","concept_ids":["IFRS2.AMENDMENTS.NET_SETTLEMENT_TAX","IFRS2.RECOGNITION.EQUITY_VS_LIABILITY"],"dimension":"ANALYSIS","context":"V1_QST.IFRS2.000059","tested_point":"QST.IFRS2.000059","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":100,"lesson_id":null,"review":{"standard_id":"IFRS2","lesson_id":"LS.IFRS2.000002","section_id":"rule-credit"},"references":["IFRS 2","IFRS 2 §30"],"exercise":{"prompt":{"fr":"","en":"An equity-settled share plan includes a net settlement clause: the entity withholds part of the shares to be delivered in order to pay the employee's tax to the tax authority. A colleague classifies the whole plan as cash-settled because of this clause. What is the error?","es":""},"explanation":{"fr":"","en":"Net settlement for tax withholding could lead one to see the part withheld as cash settlement, i.e. a liability (IFRS 2, para. 30). The June 2016 amendment adopts another solution: the transaction is classified in full as equity-settled if it would have been so without the feature, and the payments made to the tax authority are accounted for as a deduction from equity; the exception is for any excess withheld beyond the tax obligation (2016 amendment). Trap: Classifying the whole plan as cash-settled because of the net settlement clause. Rule to remember: Net settlement clause for tax: equity-settled classification kept (2016 amendment).","es":""},"common_error":{"fr":"","en":"Classifying the whole plan as cash-settled because of the net settlement clause.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Under the 2016 amendment, a plan with net settlement for tax withholding stays classified as equity-settled if it would have been without that feature.","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"The net settlement clause is a market condition, which should have been reflected in the fair value of the award and not in the classification of the plan.","es":""},"correct":false,"feedback":{"fr":"","en":"The net settlement clause concerns the manner of delivery and tax, not the share price: it is not a market condition (2016 amendment). Rule to remember: Net settlement for tax is not a vesting condition (2016 amendment).","es":""}},{"id":"C","text":{"fr":"","en":"The part withheld for tax should have been classified as cash-settled and the rest as equity-settled, whatever the applicable tax law, the withholding being paid in cash.","es":""},"correct":false,"feedback":{"fr":"","en":"Withholding for tax does not turn the part withheld into cash settlement: the 2016 amendment classifies the whole as equity-settled, only the excess withheld beyond the tax obligation being treated as cash-settled (2016 amendment). Rule to remember: Tax withholding does not change the classification (2016 amendment).","es":""}},{"id":"D","text":{"fr":"","en":"The plan should have been treated as a cancellation of the original plan, then as a new cash-settled plan from the clause.","es":""},"correct":false,"feedback":{"fr":"","en":"Introducing a net settlement clause is not a cancellation of the plan: the 2016 amendment specifically addresses the classification of a plan with such a clause (2016 amendment; IFRS 2, para. 30). Rule to remember: The clause does not create a new cash-settled plan (2016 amendment).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS2.000060","standard_id":"IFRS2","concept_ids":["IFRS2.AMENDMENTS.NET_SETTLEMENT_TAX","IFRS2.RECOGNITION.EQUITY_VS_LIABILITY"],"dimension":"CALCULATION","context":"V1_QST.IFRS2.000060","tested_point":"QST.IFRS2.000060","difficulty":"ADVANCED","source":"V1","format":"NUMERICAL","estimated_time_s":200,"lesson_id":null,"review":{"standard_id":"IFRS2","lesson_id":"LS.IFRS2.000002","section_id":"rule-credit"},"references":["IFRS 2","IFRS 2 §30"],"exercise":{"prompt":{"fr":"","en":"An equity-settled plan of Brisa SA includes a net settlement clause: at vesting, the value of the shares due to an executive is {value_at_settlement} and Brisa withholds, to pay the executive's tax to the tax authority, shares representing {tax_withholding_rate} of that value (withholding rate set by tax law: case data). Compute the amount withheld and the value of the shares delivered to the executive. The 2016 amendment applies to annual periods beginning on or after 1 January 2018.","es":""},"explanation":{"fr":"","en":"Method: 200,000 × 40% = 80,000 withheld for the tax authority; 200,000 − 80,000 = 120,000 of value delivered to the executive. The rate comes from the case's tax law, not from IFRS 2. Without the clause, the transaction would be equity-settled and not cash-settled (IFRS 2, para. 30); the 2016 amendment keeps it equity-settled and the payment of 80,000 to the tax authority is deducted from equity. Trap: Classifying the whole plan as cash-settled because of the net settlement clause. Rule to remember: Amount withheld = value × withholding rate; balance delivered to the beneficiary (2016 amendment).","es":""},"common_error":{"fr":"","en":"Classifying the whole plan as cash-settled because of the net settlement clause.","es":""},"format":"CALCULATION","placeholders":[{"id":"value_at_settlement","value":"200000","unit":"EUR"},{"id":"tax_withholding_rate","value":"40","unit":"PERCENT"}],"data":[{"label":{"fr":"","en":"Value of the shares due to the executive at vesting (case data)","es":""},"value":"200000","unit":"EUR"},{"label":{"fr":"","en":"Tax withholding rate (case data, tax law)","es":""},"value":"40","unit":"PERCENT"}],"steps":[{"id":"WITHHELD_AMOUNT","label":{"fr":"","en":"Amount withheld for the tax authority","es":""},"answer":80000,"tolerance":0,"unit":"EUR"},{"id":"NET_DELIVERED_VALUE","label":{"fr":"","en":"Value of the shares delivered to the executive","es":""},"answer":120000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"WITHHELD_AMOUNT","meaning":{"fr":"","en":"Amount withheld for the tax authority","es":""},"expression":"a * b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Value of the shares due to the executive at vesting (case data)","es":""},"value":200000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Tax withholding rate (case data, tax law)","es":""},"value":40,"unit":"PERCENT"}],"result":80000,"unit":"EUR"},{"step":"NET_DELIVERED_VALUE","meaning":{"fr":"","en":"Value of the shares delivered to the executive","es":""},"expression":"a - b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Value of the shares due to the executive at vesting (case data)","es":""},"value":200000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Amount withheld for the tax authority","es":""},"value":80000,"unit":"EUR"}],"result":120000,"unit":"EUR"}],"rationale":{"fr":"","en":"Amount withheld = value × withholding rate; balance delivered to the beneficiary (2016 amendment).","es":""},"references":["REF.IFRS2.30"]}},"scope":"CORE_STUDENT"},{"key":"QST.IFRS2.000062","standard_id":"IFRS2","concept_ids":["IFRS2.DISCLOSURES.NATURE_AND_EXTENT"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IFRS2.000062","tested_point":"QST.IFRS2.000062","difficulty":"INTERMEDIATE","source":"V1","format":"TRUE_FALSE","estimated_time_s":45,"lesson_id":null,"review":{"standard_id":"IFRS2","lesson_id":"LS.IFRS2.000012","section_id":"rule-nature"},"references":["IFRS 2 §44","IFRS 2 §45"],"exercise":{"prompt":{"fr":"","en":"Among the disclosures, the entity describes each type of share-based payment arrangement existing during the period, including its vesting conditions and the maximum term of the options.","es":""},"explanation":{"fr":"","en":"The entity provides information enabling users to understand the nature and extent of the share-based payment arrangements existing during the period: a description of each type of arrangement, including the vesting conditions and the maximum term of the options (IFRS 2, paras. 44 and 45). Trap: Describing only the main plan and omitting the other types of arrangements existing during the period. Rule to remember: Describe each type of arrangement, including vesting conditions and the maximum term of options (IFRS 2, paras. 44 and 45).","es":""},"common_error":{"fr":"","en":"Describing only the main plan and omitting the other types of arrangements existing during the period.","es":""},"format":"TRUE_FALSE","answer":true},"scope":"CORE_STUDENT"},{"key":"QST.IFRS2.000063","standard_id":"IFRS2","concept_ids":["IFRS2.DISCLOSURES.NATURE_AND_EXTENT"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IFRS2.000063","tested_point":"QST.IFRS2.000063","difficulty":"INTERMEDIATE","source":"V1","format":"MULTIPLE_CHOICE","estimated_time_s":120,"lesson_id":null,"review":{"standard_id":"IFRS2","lesson_id":"LS.IFRS2.000012","section_id":"rule-nature"},"references":["IFRS 2 §44","IFRS 2 §45"],"exercise":{"prompt":{"fr":"","en":"Which statements about the disclosure of the nature and extent of share-based payment arrangements are correct? More than one answer is possible.","es":""},"explanation":{"fr":"","en":"The disclosure on the nature and extent of the arrangements includes the description of each type of arrangement existing during the period, its vesting conditions and the maximum term of the options (IFRS 2, paras. 44 and 45). It is limited neither to the main plan nor to the amount of the expense. Trap: Describing only the main plan and omitting the other types of arrangements. Rule to remember: Describe each type of arrangement, with vesting conditions and maximum term (IFRS 2, paras. 44 and 45).","es":""},"common_error":{"fr":"","en":"Describing only the main plan and omitting the other types of arrangements existing during the period.","es":""},"format":"MULTIPLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The description includes the vesting conditions specific to each type of arrangement.","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"The disclosure is limited to the amount of the expense for the period, with no description of the arrangements that produced it.","es":""},"correct":false,"feedback":{"fr":"","en":"The amount of the expense belongs to another disclosure: the disclosure on nature and extent asks for the arrangements themselves to be described (IFRS 2, paras. 44 and 45). Rule to remember: The description of the arrangements comes in addition to the amount of the expense (IFRS 2, paras. 44 and 45).","es":""}},{"id":"C","text":{"fr":"","en":"The description includes the maximum term of the options granted.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"The entity describes each type of arrangement existing during the period, for example an employee option plan and a share appreciation rights plan.","es":""},"correct":true},{"id":"E","text":{"fr":"","en":"It is enough to describe the most important plan of the period, the other arrangements being omitted from the disclosure.","es":""},"correct":false,"feedback":{"fr":"","en":"Describing the main plan alone does not allow users to understand the nature and extent of all the arrangements: each existing type of arrangement is described (IFRS 2, paras. 44 and 45). Rule to remember: All types of arrangements are described (IFRS 2, paras. 44 and 45).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS2.000064","standard_id":"IFRS2","concept_ids":["IFRS2.DISCLOSURES.FAIR_VALUE_AND_EXPENSE"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IFRS2.000064","tested_point":"QST.IFRS2.000064","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":80,"lesson_id":null,"review":{"standard_id":"IFRS2","lesson_id":"LS.IFRS2.000012","section_id":"rule-fair-value-expense"},"references":["IFRS 2 §51"],"exercise":{"prompt":{"fr":"","en":"For its cash-settled transactions, what information about the liabilities does the entity disclose?","es":""},"explanation":{"fr":"","en":"For cash-settled transactions, the entity discloses the total carrying amount of the liabilities at the end of the period (IFRS 2, para. 51). This complements the information on the expense for the period (IFRS 2, para. 50). Trap: Disclosing the expense alone without the carrying amount of the liabilities. Rule to remember: Cash-settled transactions: total carrying amount of the liabilities at the end of the period (IFRS 2, para. 51).","es":""},"common_error":{"fr":"","en":"Disclosing the expense for the period without the carrying amount of the liabilities at the closing date.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The total carrying amount of the liabilities at the end of the period.","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"The expense for the period, excluding any carrying amount of the liabilities at the end of the period.","es":""},"correct":false,"feedback":{"fr":"","en":"The expense for the period is another disclosure: the standard also asks for the total carrying amount of the liabilities at the end of the period for cash-settled transactions (IFRS 2, para. 51). Rule to remember: The carrying amount of the liabilities comes on top of the expense (IFRS 2, para. 51).","es":""}},{"id":"C","text":{"fr":"","en":"The fair value of the liabilities at the grant date, ignoring their remeasurement since then.","es":""},"correct":false,"feedback":{"fr":"","en":"The liability is remeasured at each closing: the disclosure concerns its carrying amount at the end of the period, not the fair value at grant (IFRS 2, para. 51). Rule to remember: Carrying amount at the closing date (IFRS 2, para. 51).","es":""}},{"id":"D","text":{"fr":"","en":"The number of beneficiaries of the plan at the end of the period, with no amount relating to the liabilities.","es":""},"correct":false,"feedback":{"fr":"","en":"The number of beneficiaries does not replace an amount: the standard asks for the total carrying amount of the liabilities at the end of the period (IFRS 2, para. 51). Rule to remember: A liability amount is asked for (IFRS 2, para. 51).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS2.000065","standard_id":"IFRS2","concept_ids":["IFRS2.DISCLOSURES.FAIR_VALUE_AND_EXPENSE"],"dimension":"ANALYSIS","context":"V1_QST.IFRS2.000065","tested_point":"QST.IFRS2.000065","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":100,"lesson_id":null,"review":{"standard_id":"IFRS2","lesson_id":"LS.IFRS2.000012","section_id":"rule-fair-value-expense"},"references":["IFRS 2 §50","IFRS 2 §51"],"exercise":{"prompt":{"fr":"","en":"An entity discloses the total expense for the period on its share-based payments without distinguishing the part relating to equity-settled transactions. What is the error?","es":""},"explanation":{"fr":"","en":"The entity provides information enabling users to understand the effect of the transactions on profit or loss for the period, including the total expense distinguishing equity-settled transactions (IFRS 2, paras. 50 and 51). Disclosing the total expense without that distinction does not meet the objective. Trap: Disclosing the total expense without distinguishing equity-settled transactions. Rule to remember: Total expense, with equity-settled transactions distinguished (IFRS 2, paras. 50 and 51).","es":""},"common_error":{"fr":"","en":"Disclosing the total expense without distinguishing equity-settled transactions.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The expense should have been presented directly in equity rather than in profit or loss, since its counterpart is a reserve.","es":""},"correct":false,"feedback":{"fr":"","en":"The expense is recognised in profit or loss and its disclosure is precisely about the effect on profit or loss; presenting it in equity contradicts that objective (IFRS 2, paras. 50 and 51). Rule to remember: The disclosure aims at the effect on profit or loss (IFRS 2, paras. 50 and 51).","es":""}},{"id":"B","text":{"fr":"","en":"The expense should have been limited to cash-settled transactions, which are the most sensitive to share price movements.","es":""},"correct":false,"feedback":{"fr":"","en":"Limiting the disclosure to cash-settled transactions would deprive users of the equity-settled part: the standard asks for the total expense, with the distinction (IFRS 2, paras. 50 and 51). Rule to remember: Total expense with the distinction (IFRS 2, paras. 50 and 51).","es":""}},{"id":"C","text":{"fr":"","en":"The total expense must separately show the portion arising from equity-settled transactions.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"The expense should have been replaced by the number of options granted, the most telling indicator of the effect.","es":""},"correct":false,"feedback":{"fr":"","en":"A number of options says nothing about the effect on profit or loss: the disclosure asked for is an expense, with its split by settlement method (IFRS 2, paras. 50 and 51). Rule to remember: An expense amount is asked for (IFRS 2, paras. 50 and 51).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS2.000066","standard_id":"IFRS2","concept_ids":["IFRS2.INTERACTIONS.IAS32","IFRS2.SCOPE.SBP_TRANSACTION"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IFRS2.000066","tested_point":"QST.IFRS2.000066","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":80,"lesson_id":null,"review":{"standard_id":"IFRS2","lesson_id":"LS.IFRS2.000001","section_id":"understand"},"references":["IFRS 2 §2","IFRS 2"],"exercise":{"prompt":{"fr":"","en":"Zéphyr SA examines two contracts: (1) the grant to its employees of options on its own shares in exchange for their services; (2) a contract to buy copper, a non-financial item, that can be settled net in cash and is not held for its own supply requirements. Which standard governs each?","es":""},"explanation":{"fr":"","en":"Share-based payment transactions fall within IFRS 2 (IFRS 2, para. 2) and are excluded from IAS 32, with exceptions for certain contracts; contracts to buy non-financial items that can be settled net, other than for own use, stay within IAS 32 and are outside the scope of IFRS 2 (IAS 32, paras. 4 and 8). Trap: Applying IAS 32 to the expense of an employee option plan. Rule to remember: Option plan: IFRS 2; net-settled purchase of a non-financial item: IAS 32 (IFRS 2, para. 2).","es":""},"common_error":{"fr":"","en":"Applying IAS 32 to the expense of an employee option plan.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Contract (1) falls within IAS 32, because it creates an equity instrument; contract (2) falls within IFRS 2.","es":""},"correct":false,"feedback":{"fr":"","en":"The roles are reversed: share-based payment transactions fall within IFRS 2 and are excluded from IAS 32, whereas the purchase that can be settled net stays within IAS 32 (IFRS 2, para. 2). Rule to remember: Option plan: IFRS 2; non-financial purchase settled net: IAS 32 (IFRS 2, para. 2).","es":""}},{"id":"B","text":{"fr":"","en":"Contract (1) falls within IFRS 2; contract (2) stays within the scope of IAS 32.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"Both contracts fall within IFRS 2, because they can be settled in shares or in cash.","es":""},"correct":false,"feedback":{"fr":"","en":"The copper contract does not fall within IFRS 2: it does not exchange services for equity instruments of the entity (IFRS 2, para. 2). Rule to remember: IFRS 2 requires an exchange of goods or services for equity instruments or a price-linked liability (IFRS 2, para. 2).","es":""}},{"id":"D","text":{"fr":"","en":"Both contracts fall within IAS 32, because their settlement involves financial instruments.","es":""},"correct":false,"feedback":{"fr":"","en":"The grant of options to employees is a share-based payment transaction, excluded from IAS 32 and dealt with by IFRS 2 (IFRS 2, para. 2). Rule to remember: Share-based payment transactions follow IFRS 2 (IFRS 2, para. 2).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS2.000067","standard_id":"IFRS2","concept_ids":["IFRS2.INTERACTIONS.IAS12_DEFERRED_TAX","IFRS2.VESTING.EXPENSE_CALCULATION"],"dimension":"CALCULATION","context":"V1_QST.IFRS2.000067","tested_point":"QST.IFRS2.000067","difficulty":"EXPERT","source":"V1","format":"NUMERICAL","estimated_time_s":200,"lesson_id":null,"review":{"standard_id":"IFRS2","lesson_id":"LS.IFRS2.000006","section_id":"how-schedule"},"references":["IFRS 2","IFRS 2 §19"],"exercise":{"prompt":{"fr":"","en":"Nordis SA has granted employee options whose exercise will give rise to a future tax deduction. At the closing date, the intrinsic value of all the options is {intrinsic_value_total} and the vested share is {vested_share}; the expected tax deduction is computed on the intrinsic value multiplied by the vested share (case convention). The cumulative expense recognised is {cumulative_expense} and the tax rate is {tax_rate} (case data). Compute the deferred tax asset and the part of the tax effect taken directly to equity.","es":""},"explanation":{"fr":"","en":"Method: expected deduction = 900,000 × 50% = 450,000; deferred tax asset = 450,000 × 25% = 112,500. Excess of the expected deduction over the cumulative expense = 450,000 − 360,000 = 90,000; tax effect taken to equity = 90,000 × 25% = 22,500, the balance of 90,000 in profit or loss. The excess tax benefit is recognised directly in equity (IAS 12, para. 68C); the reference cumulative expense is the IFRS 2 one (IFRS 2, para. 19). Trap: Taking the whole tax benefit to profit or loss even when the expected deduction exceeds the cumulative expense. Rule to remember: Beyond the cumulative expense, the tax effect goes to equity (IAS 12, para. 68C; IFRS 2, para. 19).","es":""},"common_error":{"fr":"","en":"Taking the whole tax benefit to profit or loss even when the expected deduction exceeds the cumulative expense.","es":""},"format":"CALCULATION","placeholders":[{"id":"intrinsic_value_total","value":"900000","unit":"EUR"},{"id":"vested_share","value":"50","unit":"PERCENT"},{"id":"cumulative_expense","value":"360000","unit":"EUR"},{"id":"tax_rate","value":"25","unit":"PERCENT"}],"data":[{"label":{"fr":"","en":"Intrinsic value of all the options, at the closing date","es":""},"value":"900000","unit":"EUR"},{"label":{"fr":"","en":"Vested share of the vesting period","es":""},"value":"50","unit":"PERCENT"},{"label":{"fr":"","en":"Cumulative expense recognised","es":""},"value":"360000","unit":"EUR"},{"label":{"fr":"","en":"Tax rate (case data)","es":""},"value":"25","unit":"PERCENT"}],"steps":[{"id":"DEFERRED_TAX_ASSET","label":{"fr":"","en":"Deferred tax asset","es":""},"answer":112500,"tolerance":0,"unit":"EUR"},{"id":"EXCESS_TAX_EFFECT_TO_EQUITY","label":{"fr":"","en":"Tax effect taken to equity","es":""},"answer":22500,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"DEFERRED_TAX_ASSET","meaning":{"fr":"","en":"Deferred tax asset","es":""},"expression":"(a * b) * c","variables":[{"symbol":"a","meaning":{"fr":"","en":"Intrinsic value of all the options, at the closing date","es":""},"value":900000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Vested share of the vesting period","es":""},"value":50,"unit":"PERCENT"},{"symbol":"c","meaning":{"fr":"","en":"Tax rate (case data)","es":""},"value":25,"unit":"PERCENT"}],"result":112500,"unit":"EUR"}],"rationale":{"fr":"","en":"Beyond the cumulative expense, the tax effect goes to equity (IAS 12, para. 68C; IFRS 2, para. 19).","es":""},"references":["REF.IFRS2.19"]}},"scope":"CORE_STUDENT"},{"key":"QST.IFRS2.000068","standard_id":"IFRS2","concept_ids":["IFRS2.INTERACTIONS.IAS12_DEFERRED_TAX","IFRS2.VESTING.EXPENSE_CALCULATION"],"dimension":"ANALYSIS","context":"V1_QST.IFRS2.000068","tested_point":"QST.IFRS2.000068","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":100,"lesson_id":null,"review":{"standard_id":"IFRS2","lesson_id":"LS.IFRS2.000006","section_id":"how-schedule"},"references":["IFRS 2","IFRS 2 §19"],"exercise":{"prompt":{"fr":"","en":"At the closing date, the expected future tax deduction on an option plan is 450,000, while the cumulative expense recognised is 360,000. A colleague takes the tax effect of the whole expected deduction to profit or loss. What is the error?","es":""},"explanation":{"fr":"","en":"When the estimated future tax deduction exceeds the cumulative expense, the excess of the tax benefit is recognised directly in equity and the rest in profit or loss (IAS 12, para. 68C). Here, 450,000 − 360,000 = 90,000 of excess: the tax effect of that part goes to equity, that of the 360,000 cumulative expense to profit or loss (IFRS 2, para. 19). Trap: Taking the whole tax benefit to profit or loss even when the expected deduction exceeds the cumulative expense. Rule to remember: Excess of deduction over cumulative expense: tax effect in equity (IAS 12, para. 68C; IFRS 2, para. 19).","es":""},"common_error":{"fr":"","en":"Taking the whole tax benefit to profit or loss even when the expected deduction exceeds the cumulative expense.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The tax effect should have been taken to equity for the whole deduction, whatever the cumulative expense, without distinguishing the part covered by the expense.","es":""},"correct":false,"feedback":{"fr":"","en":"Only the excess goes to equity: the part of the tax effect corresponding to the cumulative expense recognised follows that expense in profit or loss (IAS 12, para. 68C). Rule to remember: Excess in equity, the rest in profit or loss (IAS 12, para. 68C).","es":""}},{"id":"B","text":{"fr":"","en":"The deferred tax asset should have been computed on the cumulative expense recognised and not on the expected tax deduction.","es":""},"correct":false,"feedback":{"fr":"","en":"Deferred tax is computed on the expected tax deduction, from the intrinsic value at the closing date and the vested share, not on the cumulative expense (IAS 12, para. 68B). Rule to remember: Basis of deferred tax: the expected deduction (IAS 12, para. 68B).","es":""}},{"id":"C","text":{"fr":"","en":"The excess of the deduction should have been carried to profit or loss of future periods, as the options are exercised.","es":""},"correct":false,"feedback":{"fr":"","en":"The excess of the tax effect is recognised from the closing date, directly in equity; it is not carried to the exercise of the options (IAS 12, para. 68C). Rule to remember: No carrying of the excess to profit or loss (IAS 12, para. 68C).","es":""}},{"id":"D","text":{"fr":"","en":"The part of the tax effect corresponding to the excess of the expected deduction over the cumulative expense is taken directly to equity.","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS2.000069","standard_id":"IFRS2","concept_ids":["IFRS2.INTERACTIONS.IAS33_DILUTION","IFRS2.CASH_SETTLED.LIABILITY_MEASUREMENT"],"dimension":"ANALYSIS","context":"V1_QST.IFRS2.000069","tested_point":"QST.IFRS2.000069","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":100,"lesson_id":null,"review":{"standard_id":"IFRS2","lesson_id":"LS.IFRS2.000008","section_id":"rule-liability"},"references":["IFRS 2","IFRS 2 §30"],"exercise":{"prompt":{"fr":"","en":"An analyst includes, in the computation of diluted earnings per share, share appreciation rights settled solely in cash, treating them as potential shares. What is the error?","es":""},"explanation":{"fr":"","en":"In diluted earnings, cash-settled programmes are ignored, and those where the entity chooses are treated as equity-settled (IAS 33, paras. 5 and 58). A programme settled solely in cash creates a liability (IFRS 2, para. 30) and leads to no issue of shares. Trap: Including in diluted earnings a programme settled solely in cash. Rule to remember: Diluted earnings: cash-settled programmes ignored (IAS 33, paras. 5 and 58; IFRS 2, para. 30).","es":""},"common_error":{"fr":"","en":"Including in diluted earnings a programme settled solely in cash.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Those rights should have been taken into account in the numerator of diluted earnings, by deducting the expense recognised.","es":""},"correct":false,"feedback":{"fr":"","en":"The treatment does not go through the numerator: programmes settled solely in cash are simply ignored in diluted earnings (IAS 33, paras. 5 and 58; IFRS 2, para. 30). Rule to remember: Cash-settled programme: ignored (IAS 33, paras. 5 and 58).","es":""}},{"id":"B","text":{"fr":"","en":"Cash-settled programmes are ignored in diluted earnings, because their settlement does not lead to the issue of shares.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"Those rights should have been treated as ordinary options, with assumed proceeds equal to the exercise price.","es":""},"correct":false,"feedback":{"fr":"","en":"The treatment of an ordinary option assumes shares are issued on exercise; a cash-settled programme does not provide for that (IFRS 2, para. 30). Rule to remember: No shares issued, no potential shares (IAS 33, paras. 5 and 58).","es":""}},{"id":"D","text":{"fr":"","en":"Those rights should have been treated as equity-settled, on the ground that the entity could deliver shares.","es":""},"correct":false,"feedback":{"fr":"","en":"The entity has no choice of settlement method in this case: only programmes where the entity chooses are treated as equity-settled (IAS 33, paras. 5 and 58; IFRS 2, para. 30). Rule to remember: The entity-choice case is distinct (IAS 33, paras. 5 and 58).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS2.000070","standard_id":"IFRS2","concept_ids":["IFRS2.INTERACTIONS.IFRS3_REPLACEMENT_AWARDS","IFRS2.VESTING.VESTING_PERIOD_ATTRIBUTION"],"dimension":"CALCULATION","context":"V1_QST.IFRS2.000070","tested_point":"QST.IFRS2.000070","difficulty":"EXPERT","source":"V1","format":"NUMERICAL","estimated_time_s":200,"lesson_id":null,"review":{"standard_id":"IFRS2","lesson_id":"LS.IFRS2.000005","section_id":"rule-vesting-period"},"references":["IFRS 2","IFRS 2 §15"],"exercise":{"prompt":{"fr":"","en":"In a business combination, Altaïr SA, the acquirer, replaces awards held by employees of the acquiree with replacement awards whose fair value is {replacement_award_fair_value}. The share of pre-combination service, determined under IFRS 3, is {pre_combination_service_percent} (case data); the market-based measure of the acquiree awards replaced equals that of the replacement awards (case data). Compute the part included in the consideration transferred and the part that will be a post-combination expense.","es":""},"explanation":{"fr":"","en":"Method: 500,000 × 60% = 300,000 of consideration transferred; 500,000 − 300,000 = 200,000 of post-combination expense. The part relating to pre-combination service is part of the consideration transferred; the part relating to post-combination service is an expense over the remaining vesting period (IFRS 3, paras. B57 to B59). That expense is recognised as the services are rendered during the remaining period (IFRS 2, para. 15). The percentage is case data, the allocation rule belonging to IFRS 3. Trap: Taking the whole replacement award to the consideration transferred. Rule to remember: Prior service: consideration transferred; later service: expense spread (IFRS 3, paras. B57 to B59; IFRS 2, para. 15).","es":""},"common_error":{"fr":"","en":"Taking the whole replacement award to the consideration transferred.","es":""},"format":"CALCULATION","placeholders":[{"id":"replacement_award_fair_value","value":"500000","unit":"EUR"},{"id":"pre_combination_service_percent","value":"60","unit":"PERCENT"}],"data":[{"label":{"fr":"","en":"Fair value of the replacement award (case data)","es":""},"value":"500000","unit":"EUR"},{"label":{"fr":"","en":"Share of pre-combination service (case data, under IFRS 3)","es":""},"value":"60","unit":"PERCENT"}],"steps":[{"id":"PRE_COMBINATION_PART","label":{"fr":"","en":"Part included in the consideration transferred","es":""},"answer":300000,"tolerance":0,"unit":"EUR"},{"id":"POST_COMBINATION_CHARGE","label":{"fr":"","en":"Part forming a post-combination expense","es":""},"answer":200000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"PRE_COMBINATION_PART","meaning":{"fr":"","en":"Part included in the consideration transferred","es":""},"expression":"a * b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Fair value of the replacement award (case data)","es":""},"value":500000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Share of pre-combination service (case data, under IFRS 3)","es":""},"value":60,"unit":"PERCENT"}],"result":300000,"unit":"EUR"},{"step":"POST_COMBINATION_CHARGE","meaning":{"fr":"","en":"Part forming a post-combination expense","es":""},"expression":"a - b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Fair value of the replacement award (case data)","es":""},"value":500000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Part included in the consideration transferred","es":""},"value":300000,"unit":"EUR"}],"result":200000,"unit":"EUR"}],"rationale":{"fr":"","en":"Prior service: consideration transferred; later service: expense spread (IFRS 3, paras. B57 to B59; IFRS 2, para. 15).","es":""},"references":["REF.IFRS2.15"]}},"scope":"CORE_STUDENT"},{"key":"QST.IFRS2.000071","standard_id":"IFRS2","concept_ids":["IFRS2.INTERACTIONS.IFRS3_REPLACEMENT_AWARDS","IFRS2.VESTING.VESTING_PERIOD_ATTRIBUTION"],"dimension":"ANALYSIS","context":"V1_QST.IFRS2.000071","tested_point":"QST.IFRS2.000071","difficulty":"EXPERT","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":100,"lesson_id":null,"review":{"standard_id":"IFRS2","lesson_id":"LS.IFRS2.000005","section_id":"rule-vesting-period"},"references":["IFRS 2","IFRS 2 §15"],"exercise":{"prompt":{"fr":"","en":"In a business combination, a colleague takes the whole fair value of a replacement award, 500,000, to the consideration transferred, on the ground that it replaces an award held by employees of the acquiree. What is the error?","es":""},"explanation":{"fr":"","en":"In a business combination, the part of the fair value of a replacement award that corresponds to pre-combination service is part of the consideration transferred; the part relating to post-combination service is an expense over the remaining vesting period (IFRS 3, paras. B57 to B59). That expense is recognised as the services are rendered (IFRS 2, para. 15). Trap: Taking the whole replacement award to the consideration transferred. Rule to remember: Prior service: consideration transferred; later service: expense spread (IFRS 3, paras. B57 to B59; IFRS 2, para. 15).","es":""},"common_error":{"fr":"","en":"Taking the whole replacement award to the consideration transferred.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The whole should have been expensed at the acquisition date, the replacement award being later than the taking of control, with no spreading over the remaining period of the plan.","es":""},"correct":false,"feedback":{"fr":"","en":"An immediate expense for the whole overlooks that services were already rendered before the combination: the earlier part belongs to the consideration transferred (IFRS 3, paras. B57 to B59). Rule to remember: The expense covers only post-combination service, spread over the remaining period (IFRS 2, para. 15).","es":""}},{"id":"B","text":{"fr":"","en":"The replacement award should have been ignored in the combination, the acquirer not having to account for it.","es":""},"correct":false,"feedback":{"fr":"","en":"The acquirer cannot ignore the replacement award: it is split between consideration transferred and expense according to service (IFRS 3, paras. B57 to B59; IFRS 2, para. 15). Rule to remember: The replacement award is accounted for (IFRS 3, paras. B57 to B59).","es":""}},{"id":"C","text":{"fr":"","en":"The fair value should have been split equally between the consideration transferred and the post-combination expense.","es":""},"correct":false,"feedback":{"fr":"","en":"The split follows the share of pre- and post-combination service, not an equal division (IFRS 3, paras. B57 to B59). Rule to remember: Split by service, not equally (IFRS 3, paras. B57 to B59; IFRS 2, para. 15).","es":""}},{"id":"D","text":{"fr":"","en":"Only the part relating to pre-combination service is part of the consideration transferred; the part relating to post-combination service is an expense over the remaining period.","es":""},"correct":true}]},"scope":"CORE_STUDENT"}],"reviewTitles":{"LX.IFRS2.000001":"Paying with shares: the transaction, the settlement method and the boundaries — Understand: paying for a service with one's own shares","LX.IFRS2.000002":"Paying with shares: the transaction, the settlement method and the boundaries — Understand: paying for a service with one's own shares","LX.IFRS2.000003":"Paying with shares: the transaction, the settlement method and the boundaries — Understand: paying for a service with one's own shares","LX.IFRS2.000004":"Paying with shares: the transaction, the settlement method and the boundaries — The rule: three settlement methods","LX.IFRS2.000005":"Paying with shares: the transaction, the settlement method and the boundaries — The rule: three settlement methods","LX.IFRS2.000006":"Paying with shares: the transaction, the settlement method and the boundaries — The rule: three settlement methods","LX.IFRS2.000007":"Paying with shares: the transaction, the settlement method and the boundaries — Professional judgement: classifying from the entity's rights and obligations","LX.IFRS2.000008":"Paying with shares: the transaction, the settlement method and the boundaries — The rule: the boundaries with IAS 19 and other standards","LX.IFRS2.000009":"Paying with shares: the transaction, the settlement method and the boundaries — The rule: the boundaries with IAS 19 and other standards","LX.IFRS2.000010":"Paying with shares: the transaction, the settlement method and the boundaries — The rule: the boundaries with IAS 19 and other standards","LX.IFRS2.000011":"Recognising: when the services are received, against equity or a liability — Understand: the expense follows the receipt of the service","LX.IFRS2.000012":"Recognising: when the services are received, against equity or a liability — The rule: expense or asset depending on what is received","LX.IFRS2.000013":"Recognising: when the services are received, against equity or a liability — The entry: immediately vested instruments","LX.IFRS2.000014":"Recognising: when the services are received, against equity or a liability — The rule: expense or asset depending on what is received","LX.IFRS2.000015":"Recognising: when the services are received, against equity or a liability — The rule: the credit depends on what the entity hands over","LX.IFRS2.000016":"Recognising: when the services are received, against equity or a liability — The entries: same expense, two credit sides","LX.IFRS2.000017":"Recognising: when the services are received, against equity or a liability — The rule: the credit depends on what the entity hands over","LX.IFRS2.000018":"Recognising: when the services are received, against equity or a liability — The rule: the credit depends on what the entity hands over","LX.IFRS2.000019":"Measuring a grant to employees: the grant date and a fixed fair value — The rule: the grant date is the date of full agreement","LX.IFRS2.000020":"Measuring a grant to employees: the grant date and a fixed fair value — The rule: the grant date is the date of full agreement","LX.IFRS2.000021":"Measuring a grant to employees: the grant date and a fixed fair value — Numeric example: services that begin before the grant date","LX.IFRS2.000022":"Measuring a grant to employees: the grant date and a fixed fair value — The rule: the grant date is the date of full agreement","LX.IFRS2.000023":"Measuring a grant to employees: the grant date and a fixed fair value — Understand: measuring the shares granted, not the work done","LX.IFRS2.000024":"Measuring a grant to employees: the grant date and a fixed fair value — Understand: measuring the shares granted, not the work done","LX.IFRS2.000025":"Measuring a grant to employees: the grant date and a fixed fair value — Understand: measuring the shares granted, not the work done","LX.IFRS2.000026":"Measuring a grant to employees: the grant date and a fixed fair value — The rule: no remeasurement after the grant date","LX.IFRS2.000027":"Measuring a grant to employees: the grant date and a fixed fair value — The entry: exercise of the options","LX.IFRS2.000028":"Measuring a grant to employees: the grant date and a fixed fair value — The rule: no remeasurement after the grant date","LX.IFRS2.000029":"Parties other than employees and the estimation of fair value — The rule: comparing two measurement bases","LX.IFRS2.000030":"Parties other than employees and the estimation of fair value — The rule: comparing two measurement bases","LX.IFRS2.000031":"Parties other than employees and the estimation of fair value — Professional judgement: is the presumption rebutted?","LX.IFRS2.000032":"Parties other than employees and the estimation of fair value — Professional judgement: is the presumption rebutted?","LX.IFRS2.000034":"Parties other than employees and the estimation of fair value — The rule: market price or model, and its inputs","LX.IFRS2.000035":"Parties other than employees and the estimation of fair value — Professional judgement: choosing and justifying the inputs","LX.IFRS2.000036":"Parties other than employees and the estimation of fair value — The rule: market price or model, and its inputs","LX.IFRS2.000037":"Vesting conditions, the vesting period and no true-up for market conditions — The rule: four types of conditions","LX.IFRS2.000038":"Vesting conditions, the vesting period and no true-up for market conditions — The rule: four types of conditions","LX.IFRS2.000039":"Vesting conditions, the vesting period and no true-up for market conditions — Professional judgement: classifying a clause and estimating the length of the period","LX.IFRS2.000040":"Vesting conditions, the vesting period and no true-up for market conditions — Professional judgement: classifying a clause and estimating the length of the period","LX.IFRS2.000041":"Vesting conditions, the vesting period and no true-up for market conditions — The rule: vesting period and option life are not the same thing","LX.IFRS2.000042":"Vesting conditions, the vesting period and no true-up for market conditions — Numeric example: Brelon's four-year plan","LX.IFRS2.000043":"Vesting conditions, the vesting period and no true-up for market conditions — Numeric example: Brelon's four-year plan","LX.IFRS2.000044":"Vesting conditions, the vesting period and no true-up for market conditions — The rule: vesting period and option life are not the same thing","LX.IFRS2.000045":"Vesting conditions, the vesting period and no true-up for market conditions — The rule: market and non-vesting conditions, no true-up","LX.IFRS2.000046":"Vesting conditions, the vesting period and no true-up for market conditions — The rule: market and non-vesting conditions, no true-up","LX.IFRS2.000047":"Vesting conditions, the vesting period and no true-up for market conditions — Numeric example: price target missed, employees leaving","LX.IFRS2.000048":"Vesting conditions, the vesting period and no true-up for market conditions — The rule: market and non-vesting conditions, no true-up","LX.IFRS2.000049":"Revising the expected number and calculating the expense, year after year — The rule: the cumulative catch-up","LX.IFRS2.000050":"Revising the expected number and calculating the expense, year after year — The rule: the cumulative catch-up","LX.IFRS2.000051":"Revising the expected number and calculating the expense, year after year — Numeric example: Selvane's plan over four years","LX.IFRS2.000052":"Revising the expected number and calculating the expense, year after year — Selvane's entries and reserve","LX.IFRS2.000053":"Revising the expected number and calculating the expense, year after year — How to calculate: five steps at each reporting date","LX.IFRS2.000054":"Revising the expected number and calculating the expense, year after year — The rule: when the revision produces a reversal","LX.IFRS2.000055":"Revising the expected number and calculating the expense, year after year — The rule: when the revision produces a reversal","LX.IFRS2.000056":"Revising the expected number and calculating the expense, year after year — Professional judgement: estimating the number of instruments expected","LX.IFRS2.000057":"Revising the expected number and calculating the expense, year after year — Numeric example: Selvane's plan over four years","LX.IFRS2.000058":"Revising the expected number and calculating the expense, year after year — How to calculate: five steps at each reporting date","LX.IFRS2.000059":"Revising the expected number and calculating the expense, year after year — The rule: the cumulative catch-up","LX.IFRS2.000060":"Modifying, cancelling or settling a plan during vesting — The rule: recognising a beneficial modification","LX.IFRS2.000061":"Modifying, cancelling or settling a plan during vesting — Numeric example: the exercise price cut at Kovan","LX.IFRS2.000062":"Modifying, cancelling or settling a plan during vesting — Numeric example: the exercise price cut at Kovan","LX.IFRS2.000063":"Modifying, cancelling or settling a plan during vesting — Kovan's year 3 entry","LX.IFRS2.000064":"Modifying, cancelling or settling a plan during vesting — The rule: a non-beneficial modification does not reduce the expense","LX.IFRS2.000065":"Modifying, cancelling or settling a plan during vesting — The rule: a non-beneficial modification does not reduce the expense","LX.IFRS2.000066":"Modifying, cancelling or settling a plan during vesting — Professional judgement: assessing whether a modification is beneficial","LX.IFRS2.000067":"Modifying, cancelling or settling a plan during vesting — The rule: cancellation or settlement during the vesting period","LX.IFRS2.000068":"Modifying, cancelling or settling a plan during vesting — Numeric example: the cancellation of Mirel's plan with compensation","LX.IFRS2.000069":"Modifying, cancelling or settling a plan during vesting — Numeric example: the cancellation of Mirel's plan with compensation","LX.IFRS2.000070":"Modifying, cancelling or settling a plan during vesting — The rule: cancellation or settlement during the vesting period","LX.IFRS2.000071":"Modifying, cancelling or settling a plan during vesting — The rule: cancellation or settlement during the vesting period","LX.IFRS2.000072":"Modifying, cancelling or settling a plan during vesting — The rule: cancellation or settlement during the vesting period","LX.IFRS2.000074":"Cash-settled transactions: a liability remeasured until settlement — Numeric example: Orvane's rights over three years","LX.IFRS2.000075":"Cash-settled transactions: a liability remeasured until settlement — Orvane's entries and the liability roll-forward","LX.IFRS2.000076":"Cash-settled transactions: a liability remeasured until settlement — Orvane's entries and the liability roll-forward","LX.IFRS2.000077":"Cash-settled transactions: a liability remeasured until settlement — Orvane's entries and the liability roll-forward","LX.IFRS2.000078":"Cash-settled transactions: a liability remeasured until settlement — Orvane's entries and the liability roll-forward","LX.IFRS2.000079":"Cash-settled transactions: a liability remeasured until settlement — Understand: a debt that moves with the share price","LX.IFRS2.000080":"Cash-settled transactions: a liability remeasured until settlement — Numeric example: Orvane's rights over three years","LX.IFRS2.000081":"Cash-settled transactions: a liability remeasured until settlement — The rule: conditions in a cash-settled transaction","LX.IFRS2.000082":"Cash-settled transactions: a liability remeasured until settlement — The rule: conditions in a cash-settled transaction","LX.IFRS2.000083":"Cash-settled transactions: a liability remeasured until settlement — The rule: conditions in a cash-settled transaction","LX.IFRS2.000084":"Cash-settled transactions: a liability remeasured until settlement — The rule: conditions in a cash-settled transaction","LX.IFRS2.000085":"Settlement alternatives: who chooses, and must the entity pay in cash? — Understand: a plan that leaves two outcomes open","LX.IFRS2.000086":"Settlement alternatives: who chooses, and must the entity pay in cash? — Professional judgement: is there a present obligation to pay in cash?","LX.IFRS2.000087":"Settlement alternatives: who chooses, and must the entity pay in cash? — The rule: the choice belongs to the counterparty","LX.IFRS2.000088":"Settlement alternatives: who chooses, and must the entity pay in cash? — Numeric example: the choice of Fenwick's employees","LX.IFRS2.000089":"Settlement alternatives: who chooses, and must the entity pay in cash? — Numeric example: the choice of Fenwick's employees","LX.IFRS2.000090":"Settlement alternatives: who chooses, and must the entity pay in cash? — Numeric example: the choice of Fenwick's employees","LX.IFRS2.000091":"Settlement alternatives: who chooses, and must the entity pay in cash? — The rule: when the entity chooses, the present obligation decides","LX.IFRS2.000092":"Settlement alternatives: who chooses, and must the entity pay in cash? — The entry: cash settlement of a plan classified as equity-settled","LX.IFRS2.000093":"Settlement alternatives: who chooses, and must the entity pay in cash? — Understand: a plan that leaves two outcomes open","LX.IFRS2.000094":"Settlement alternatives: who chooses, and must the entity pay in cash? — The rule: when the entity chooses, the present obligation decides","LX.IFRS2.000095":"Settlement alternatives: who chooses, and must the entity pay in cash? — Understand: a plan that leaves two outcomes open","LX.IFRS2.000096":"Group transactions: each entity assesses its own rights and obligations — Understand: \"the entity\" is not always the group","LX.IFRS2.000098":"Group transactions: each entity assesses its own rights and obligations — The rule: the parent grants its shares to the subsidiary's employees","LX.IFRS2.000099":"Group transactions: each entity assesses its own rights and obligations — Numeric example: the expense in the statements of the subsidiary Brindel","LX.IFRS2.000100":"Group transactions: each entity assesses its own rights and obligations — Numeric example: the expense in the statements of the subsidiary Brindel","LX.IFRS2.000102":"Group transactions: each entity assesses its own rights and obligations — The rule: the entity receiving the services, in its separate statements","LX.IFRS2.000103":"Group transactions: each entity assesses its own rights and obligations — Professional judgement: classifying in each group entity","LX.IFRS2.000104":"Group transactions: each entity assesses its own rights and obligations — The rule: the parent grants its shares to the subsidiary's employees","LX.IFRS2.000105":"The 2016 amendments: net settlement for withholding tax and moving from cash to equity — Understand: the credit side follows the nature of what the entity must deliver","LX.IFRS2.000106":"The 2016 amendments: net settlement for withholding tax and moving from cash to equity — The rule: net settlement for withholding tax","LX.IFRS2.000107":"The 2016 amendments: net settlement for withholding tax and moving from cash to equity — Numeric example: the tax withholding at Sorvel","LX.IFRS2.000108":"The 2016 amendments: net settlement for withholding tax and moving from cash to equity — Numeric example: the tax withholding at Sorvel","LX.IFRS2.000109":"The 2016 amendments: net settlement for withholding tax and moving from cash to equity — The rule: net settlement for withholding tax","LX.IFRS2.000110":"The 2016 amendments: net settlement for withholding tax and moving from cash to equity — The rule: from cash to equity","LX.IFRS2.000111":"The 2016 amendments: net settlement for withholding tax and moving from cash to equity — The rule: from cash to equity","LX.IFRS2.000112":"The 2016 amendments: net settlement for withholding tax and moving from cash to equity — The rule: from cash to equity","LX.IFRS2.000113":"The 2016 amendments: net settlement for withholding tax and moving from cash to equity — The rule: effective date and transition","LX.IFRS2.000114":"The 2016 amendments: net settlement for withholding tax and moving from cash to equity — Professional judgement: documenting the withholding and the change of classification","LX.IFRS2.000115":"Disclosures on share-based payments — The rule: fair value, expense, liabilities and additional information","LX.IFRS2.000116":"Disclosures on share-based payments — The rule: describing the arrangements","LX.IFRS2.000117":"Disclosures on share-based payments — The rule: fair value, expense, liabilities and additional information","LX.IFRS2.000118":"Disclosures on share-based payments — The rule: fair value, expense, liabilities and additional information","LX.IFRS2.000119":"Disclosures on share-based payments — Professional judgement: does the information meet the objective?","LX.IFRS2.000120":"Disclosures on share-based payments — The rule: fair value, expense, liabilities and additional information","LX.IFRS2.000121":"Disclosures on share-based payments — Example: an extract from Vendrel's notes","LX.IFRS2.000122":"Disclosures on share-based payments — The rule: describing the arrangements","LX.IFRS2.000123":"At the borders: IAS 32, diluted earnings per share and agenda decisions — The rule: IFRS 2 takes these transactions out of IAS 32","LX.IFRS2.000124":"At the borders: IAS 32, diluted earnings per share and agenda decisions — Example: two contracts, two standards","LX.IFRS2.000125":"At the borders: IAS 32, diluted earnings per share and agenda decisions — The rule: IFRS 2 takes these transactions out of IAS 32","LX.IFRS2.000126":"At the borders: IAS 32, diluted earnings per share and agenda decisions — The rule: employee options in diluted earnings per share","LX.IFRS2.000127":"At the borders: IAS 32, diluted earnings per share and agenda decisions — The rule: employee options in diluted earnings per share","LX.IFRS2.000128":"At the borders: IAS 32, diluted earnings per share and agenda decisions — Example: the assumed proceeds of an option","LX.IFRS2.000129":"At the borders: IAS 32, diluted earnings per share and agenda decisions — The rule: what an agenda decision is","LX.IFRS2.000130":"At the borders: IAS 32, diluted earnings per share and agenda decisions — Example: the 2006 decision on the entity's choice","LX.IFRS2.000131":"At the borders: IAS 32, diluted earnings per share and agenda decisions — Professional judgement: how much weight to give a Committee document","LX.IFRS2.000132":"At the borders: IAS 32, diluted earnings per share and agenda decisions — The rule: what an agenda decision is","LX.IFRS2.000133":"Deferred tax and replacement awards in a business combination — Numeric example: Dorvane SA","LX.IFRS2.000134":"Deferred tax and replacement awards in a business combination — The entry: deferred tax asset","LX.IFRS2.000135":"Deferred tax and replacement awards in a business combination — The rule: deferred tax asset and the part taken to equity","LX.IFRS2.000136":"Deferred tax and replacement awards in a business combination — The rule: deferred tax asset and the part taken to equity","LX.IFRS2.000137":"Deferred tax and replacement awards in a business combination — Numeric example: Nelvane replaces Ostrane's options","LX.IFRS2.000138":"Deferred tax and replacement awards in a business combination — The rule: the pre-combination part and the post-combination part","LX.IFRS2.000139":"Deferred tax and replacement awards in a business combination — Numeric example: Nelvane replaces Ostrane's options","LX.IFRS2.000140":"Deferred tax and replacement awards in a business combination — Professional judgement: documenting deferred tax and the split in a combination","QST.IFRS2.000001":"Paying with shares: the transaction, the settlement method and the boundaries — Understand: paying for a service with one's own shares","QST.IFRS2.000002":"Paying with shares: the transaction, the settlement method and the boundaries — Understand: paying for a service with one's own shares","QST.IFRS2.000003":"Paying with shares: the transaction, the settlement method and the boundaries — Understand: paying for a service with one's own shares","QST.IFRS2.000004":"Paying with shares: the transaction, the settlement method and the boundaries — The rule: three settlement methods","QST.IFRS2.000005":"Paying with shares: the transaction, the settlement method and the boundaries — The rule: three settlement methods","QST.IFRS2.000007":"Measuring a grant to employees: the grant date and a fixed fair value — The rule: the grant date is the date of full agreement","QST.IFRS2.000008":"Measuring a grant to employees: the grant date and a fixed fair value — The rule: the grant date is the date of full agreement","QST.IFRS2.000009":"Measuring a grant to employees: the grant date and a fixed fair value — The rule: the grant date is the date of full agreement","QST.IFRS2.000010":"Paying with shares: the transaction, the settlement method and the boundaries — The rule: the boundaries with IAS 19 and other standards","QST.IFRS2.000011":"Paying with shares: the transaction, the settlement method and the boundaries — The rule: the boundaries with IAS 19 and other standards","QST.IFRS2.000012":"Recognising: when the services are received, against equity or a liability — The rule: expense or asset depending on what is received","QST.IFRS2.000013":"Recognising: when the services are received, against equity or a liability — The rule: expense or asset depending on what is received","QST.IFRS2.000015":"Recognising: when the services are received, against equity or a liability — The rule: the credit depends on what the entity hands over","QST.IFRS2.000016":"Recognising: when the services are received, against equity or a liability — The rule: the credit depends on what the entity hands over","QST.IFRS2.000018":"Measuring a grant to employees: the grant date and a fixed fair value — Understand: measuring the shares granted, not the work done","QST.IFRS2.000019":"Measuring a grant to employees: the grant date and a fixed fair value — Understand: measuring the shares granted, not the work done","QST.IFRS2.000021":"Parties other than employees and the estimation of fair value — The rule: comparing two measurement bases","QST.IFRS2.000023":"Measuring a grant to employees: the grant date and a fixed fair value — The rule: no remeasurement after the grant date","QST.IFRS2.000025":"Parties other than employees and the estimation of fair value — The rule: market price or model, and its inputs","QST.IFRS2.000026":"Vesting conditions, the vesting period and no true-up for market conditions — The rule: four types of conditions","QST.IFRS2.000027":"Vesting conditions, the vesting period and no true-up for market conditions — The rule: four types of conditions","QST.IFRS2.000029":"Vesting conditions, the vesting period and no true-up for market conditions — The rule: vesting period and option life are not the same thing","QST.IFRS2.000030":"Vesting conditions, the vesting period and no true-up for market conditions — The rule: vesting period and option life are not the same thing","QST.IFRS2.000032":"Revising the expected number and calculating the expense, year after year — The rule: the cumulative catch-up","QST.IFRS2.000033":"Revising the expected number and calculating the expense, year after year — The rule: the cumulative catch-up","QST.IFRS2.000034":"Revising the expected number and calculating the expense, year after year — The rule: the cumulative catch-up","QST.IFRS2.000035":"Vesting conditions, the vesting period and no true-up for market conditions — The rule: market and non-vesting conditions, no true-up","QST.IFRS2.000036":"Vesting conditions, the vesting period and no true-up for market conditions — The rule: market and non-vesting conditions, no true-up","QST.IFRS2.000037":"Vesting conditions, the vesting period and no true-up for market conditions — The rule: four types of conditions","QST.IFRS2.000038":"Revising the expected number and calculating the expense, year after year — How to calculate: five steps at each reporting date","QST.IFRS2.000039":"Revising the expected number and calculating the expense, year after year — How to calculate: five steps at each reporting date","QST.IFRS2.000041":"Modifying, cancelling or settling a plan during vesting — The rule: recognising a beneficial modification","QST.IFRS2.000042":"Modifying, cancelling or settling a plan during vesting — The rule: recognising a beneficial modification","QST.IFRS2.000043":"Modifying, cancelling or settling a plan during vesting — The rule: a non-beneficial modification does not reduce the expense","QST.IFRS2.000044":"Modifying, cancelling or settling a plan during vesting — The rule: cancellation or settlement during the vesting period","QST.IFRS2.000046":"Cash-settled transactions: a liability remeasured until settlement — The rule: closing liability and expense of the period","QST.IFRS2.000047":"Cash-settled transactions: a liability remeasured until settlement — The rule: closing liability and expense of the period","QST.IFRS2.000048":"Cash-settled transactions: a liability remeasured until settlement — The rule: closing liability and expense of the period","QST.IFRS2.000049":"Settlement alternatives: who chooses, and must the entity pay in cash? — The rule: when the entity chooses, the present obligation decides","QST.IFRS2.000051":"Settlement alternatives: who chooses, and must the entity pay in cash? — The rule: the choice belongs to the counterparty","QST.IFRS2.000052":"Settlement alternatives: who chooses, and must the entity pay in cash? — The rule: the choice belongs to the counterparty","QST.IFRS2.000053":"Settlement alternatives: who chooses, and must the entity pay in cash? — The rule: when the entity chooses, the present obligation decides","QST.IFRS2.000055":"Group transactions: each entity assesses its own rights and obligations — The rule: the entity receiving the services, in its separate statements","QST.IFRS2.000056":"Group transactions: each entity assesses its own rights and obligations — The rule: the parent grants its shares to the subsidiary's employees","QST.IFRS2.000057":"Cash-settled transactions: a liability remeasured until settlement — The rule: closing liability and expense of the period","QST.IFRS2.000058":"Cash-settled transactions: a liability remeasured until settlement — The rule: closing liability and expense of the period","QST.IFRS2.000059":"Recognising: when the services are received, against equity or a liability — The rule: the credit depends on what the entity hands over","QST.IFRS2.000060":"Recognising: when the services are received, against equity or a liability — The rule: the credit depends on what the entity hands over","QST.IFRS2.000062":"Disclosures on share-based payments — The rule: describing the arrangements","QST.IFRS2.000063":"Disclosures on share-based payments — The rule: describing the arrangements","QST.IFRS2.000064":"Disclosures on share-based payments — The rule: fair value, expense, liabilities and additional information","QST.IFRS2.000065":"Disclosures on share-based payments — The rule: fair value, expense, liabilities and additional information","QST.IFRS2.000066":"Paying with shares: the transaction, the settlement method and the boundaries — Understand: paying for a service with one's own shares","QST.IFRS2.000067":"Revising the expected number and calculating the expense, year after year — How to calculate: five steps at each reporting date","QST.IFRS2.000068":"Revising the expected number and calculating the expense, year after year — How to calculate: five steps at each reporting date","QST.IFRS2.000069":"Cash-settled transactions: a liability remeasured until settlement — The rule: closing liability and expense of the period","QST.IFRS2.000070":"Vesting conditions, the vesting period and no true-up for market conditions — The rule: vesting period and option life are not the same thing","QST.IFRS2.000071":"Vesting conditions, the vesting period and no true-up for market conditions — The rule: vesting period and option life are not the same thing"}}